Stolle relaunches, reducing size of first-lien add-on, revising second-lien pricing

By Sara Rosenberg

New York, July 19 - Stolle Machinery Co. LLC relaunched the add-on amendment to its credit facility on Thursday, cutting the amount of incremental debt in half, scrapping plans to repay second-lien debt and revising second-lien pricing, according to a market source.

The amendment was relaunched with an update posted to Intralinks. No meeting will take place.

Through the new proposal, the company is looking to get a $50 million first-lien term loan B add-on, as opposed to a $100 million first-lien term loan B add-on, with proceeds now only being used for a dividend payment as opposed to also repaying the second-lien term loan, the source said.

The add-on, like before, is priced at Libor plus 250 basis points, in line with existing pricing.

In addition, the company will change pricing on its existing $50 million second-lien term loan to Libor plus 650 bps from current pricing of Libor plus 600 bps, the source continued.

The deal will have three covenants - total leverage, interest coverage and capital expenditures.

The company's existing $25 million revolver will remain in place.

Leverage is 3.7 times through the first lien and 4.8 times through the second lien.

LTM EBITDA through May is at $47 million versus $42 million through March.

Goldman Sachs is the lead bank on the deal, which is hoped to wrap up by July 27.

Stolle is a Centennial, Colo.-based producer of capital equipment, spare parts and services for the rigid packaging industry.

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