Sensata to launch $600 million incremental term loan on Tuesday

By Sara Rosenberg

New York, Sept. 29 – Sensata Technologies BV is scheduled to hold a conference call at 11 a.m. ET on Tuesday to launch a $600 million seven-year incremental term loan, according to a market source.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and Goldman Sachs Bank USA are the lead banks on the deal.

Official price talk on the term loan is not yet available.

The commitment letter filed with the Securities and Exchange Commission this summer had the term loan expected at Libor plus 275 basis points with a step-down to Libor plus 250 bps when total net leverage is 3 times, a 0.75% Libor floor and 101 soft call protection for six months.

Proceeds, along with senior notes and cash from the balance sheet, will be used to fund the acquisition of Schrader International from Madison Dearborn Partners LLC for $1 billion.

Closing is expected in the fourth quarter, subject to regulatory approval.

Sensata is a supplier of sensing, electrical protection, control and power management solutions. Schrader is a Denver-based manufacturer of sensing and valve solutions for the automotive and industrial segments.

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