SunSource cuts spread on $1.69 billion term loan to SOFR plus 400 bps

By Sara Rosenberg

New York, March 14 – SunSource (CD&R Hydra Buyer Inc./STS Operating Inc.) reduced pricing on its $1.685 billion seven-year first-lien term loan (B3/B) to SOFR plus 400 basis points from talk in the range of SOFR plus 425 bps to 450 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 99.5 from 99, the source said.

As before, the term loan has a 0% floor and 101 soft call protection for six months.

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.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Allocations are expected on Friday.

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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