Sequa upsizes 4.5-year covenant-light first-lien loan to $900 million, cancels notes offer

By Paul A. Harris

Portland, Ore., April 12 – Sequa Corp. upsized its 4.5-year covenant-light first-lien term loan B (//B) to $900 million from $600 million and concurrently abandoned plans to sell $300 million of senior secured notes, according to a market source.

Final commitments are due at 5 p.m. ET on Thursday.

The credit facility, now sized at $1,385,000,000, also features a $350 million five-year covenant-light second-lien term loan (//CCC) and a $135 million revolver (//B).

The first-lien term loan is talked at Libor plus 575 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 1,000 bps to 1,050 bps with a 1% Libor floor and a discount of 98.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Barclays is the left lead on the deal.

Proceeds will be used for a recapitalization/refinancing of existing debt.

Sequa is a Palm Beach Gardens, Fla.-based aerospace and diversified industrial company.

© 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.