MW Industries updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, Sept. 28 – MW Industries firmed pricing on its $385 million seven-year first-lien term loan (B2/B) at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, and on its $120 million eight-year second-lien term loan (Caa2/CCC+) at Libor plus 800 bps, the wide end of the Libor plus 775 bps to 800 bps talk, according to a market source.

Also, a step-down was added to the first-lien term loan to Libor plus 375 bps if corporate ratings are B2/B. Current corporate ratings are B3/B.

The first-lien term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s $575 million of credit facilities also include a $70 million five-year revolver.

RBC Capital Markets LLC, Citigroup Global Markets Inc., Jefferies LLC, Citizens Bank and Antares Capital are the joint bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by American Securities from Genstar.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

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