Metaldyne lifts term loan B amount to $1.35 billion, trims bond size

By Sara Rosenberg

New York, Oct. 8 – Metaldyne LLC increased its seven-year covenant-light term loan B to $1.35 billion from $1.25 billion and downsized its bond deal to $600 million from $700 million, according to a market source.

As before, the term loan is priced at Libor plus 350 basis points with a step-down to Libor plus 325 bps after a qualifying initial public offering, a 1% Libor floor and an original issue discount of 99˝ and has 101 soft call protection for six months.

The company’s now $1.6 billion credit facility (Ba3/BB+), up from $1.5 billion, also includes a $250 million five-year revolver.

Recommitments are due at noon ET on Thursday, the source said.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Nomura, Keybanc Capital Markets LLC and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds from the credit facility and bonds will be used to refinance existing debt.

Metaldyne is a Plymouth, Mich.-based manufacturer of highly engineered metal-based components for engine, transmission, and driveline applications in the automotive and light truck markets.

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