Sequa cuts spread on $200 million term loan to Libor plus 475 bps

By Sara Rosenberg

New York, Oct. 27 - Sequa Corp. reduced pricing on its $200 million incremental senior secured term loan (B1/B-) to Libor plus 475 basis points from talk of Libor plus 500 bps to 525 bps, according to a market source.

Also, the original issue discount firmed at 99, the tight end of the 98½ to 99 talk, and the 101 soft call protection was shortened to six months from one year, the source said.

The 1.5% Libor floor was left unchanged.

Commitments were due at the end of the day Thursday, and allocations are expected on Friday.

Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal, with Barclays the left lead.

Proceeds will be used to help fund the $245 million acquisition of Roll Coater Inc.

Other funds for the transaction will come from cash on hand.

Sequa is a New York-based diversified aerospace and industrial company. Roll Coater is an Indianapolis-based coil coating company.

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