Oshkosh $1.2 billion pro rata loans price on leverage-based grid

By Paul A. Harris

St. Louis, Sept. 9 - Oshkosh Corp. set pricing on its $1.2 billion pro rata credit facility (Ba3/BB-), a market source said on Thursday.

The deal features up to a $550 million revolver and a $650 million term loan A.

The spread is pegged to a leverage-based grid, which opens at Libor plus 300 basis points at 2.75 times to 3.75 times leverage.

Maximum total leverage is 4.5 times. Maximum senior secured leverage is 3.25 times. Minimum interest coverage is 2.5 times.

There is a 50 bps undrawn fee on the revolver.

The loan has a 2½% quarterly amortization, with a bullet maturity.

There is a $400 million increase option.

Bank of America and JPMorgan are leading the deal that will be marketed to banks.

Proceeds will be used to refinance existing bank debt.

Oshkosh is an Oshkosh, Wis.-based designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.