Southwire cuts spread on $750 million term loan to Libor plus 250 bps

By Sara Rosenberg

New York, Jan. 30 - Southwire Co. reduced pricing on its $750 million seven-year covenant-light term loan (Ba3/BB+) to Libor plus 250 basis points from talk of Libor plus 275 bps to 300 bps and added a step-down to Libor plus 225 bps when net leverage is less than 2 times, according to a market source.

Also, the original issue discount on the term loan was tightened to 99¾ from 991/2, the source said.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 11:30 a.m. ET on Thursday, the source added.

The company's $1.75 billion senior secured credit facility also includes a $1 billion five-year asset-based revolver.

Bank of America Merrill Lynch, BMO Capital Markets, Wells Fargo Securities LLC and Macquarie Capital are joint lead arrangers and joint bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Coleman Cable Inc. for $26.25 per share in cash in a transaction valued at about $786 million, including the assumption of $294 million in net debt.

Closing is expected this quarter, subject to a majority of Coleman shares being tendered, the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act and other customary conditions.

Southwire is a Carrollton, Ga.-based wire and cable producer. Coleman is a Waukegan, Ill.-based manufacturer of electrical and electronic wire and cable products.

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