Ohmstede sets Wednesday launch for $195 million credit facility

By Sara Rosenberg

New York, July 14 - Ohmstede Ltd. has firmed up timing on its credit facility with the scheduling of a Wednesday morning bank meeting and, now that the launch is nearing, a total size of $195 million emerged on the transaction, according to a market source.

Previously it was know that the deal would be launching this week, with Tuesday or Wednesday as the targeted dates.

The facility consists of a $30 million revolver and $165 million in term loan debt that will be divided into a first-lien tranche and a second-lien tranche, the source said. Sizes on the first- and second-lien term loans are still to be determined.

Morgan Stanley and Credit Suisse are the lead banks on the deal, with Morgan Stanley the left lead.

Proceeds from the credit facility will be used to help fund First Reserve Corp.'s leveraged buyout of Ohmstede from Tanglewood Investments Inc.

Ohmstede is a Beaumont, Texas, company that manufactures and maintains heat exchangers.

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