SunSource launches $1.69 billion term loan at SOFR plus 425-450 bps

By Sara Rosenberg

New York, March 6 – SunSource (CD&R Hydra Buyer Inc./STS Operating Inc.) launched on Wednesday its $1.685 billion seven-year first-lien term loan (B3/B) with price talk of SOFR plus 425 basis points to 450 bps with a 0% floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $2.185 billion of credit facilities also include a $500 million five-year ABL revolver.

UBS Investment Bank is the left lead arranger on the deal.

Commitments for the term loan are due at 5 p.m. ET on March 15, the source added.

Proceeds will be used to refinance the company’s existing capital structure, to fund a distribution to shareholders, to pay original issue discount, fees and expenses, and to add cash to the balance sheet.

SunSource is an Addison, Ill.-based distributor of highly technical products, solutions and services.

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