Autoparts Holdings sets price talk on first-, second-lien term loans

By Sara Rosenberg

New York, July 7 - Autoparts Holdings Ltd. came out with price talk on its first- and second-lien term loans in connection with its launch on Thursday, according to a market source.

The $530 million first-lien term loan (B+) is being talked at Libor plus 500 basis points and the $150 million second-lien term loan (B-) is being talked at Libor plus 900 bps, with both tranches having a 1.5% Libor floor and an original issue discount of 99, the source said.

The first-lien term loan includes 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $730 million senior secured credit facility also provides for a $50 million revolver (B+).

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and Nomura are the joint lead arrangers on the deal.

Proceeds will be used to help fund the acquisition by Rank Group of Honeywell's automotive Consumer Products Group (Autoparts Holdings) in a cash transaction valued at about $950 million.

Other funds for the purchase will come from roughly $307 million of equity.

Closing is expected in the third quarter, subject to regulatory approval and customary conditions. It is not subject to financing.

Autoparts Holdings is a Danbury, Conn.-based supplier to the light- and heavy-duty vehicle aftermarket for replacement parts.

© 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.