Waupaca Foundry raises term loan pricing to Libor plus 725 bps

By Sara Rosenberg

New York, June 22 - Waupaca Foundry Inc. increased pricing on its $260 million term loan (BB-) to Libor plus 725 basis points from Libor plus 550 bps, according to a market source.

Also, the original issue discount was moved to 98 from 98½ and soft call protection was changed to 102 in year one and 101 in year two, from just 101 for one year, the source said.

In addition, there is now 5% amortization per year, up from 1% previously, the source continued.

The 1.25% Libor floor was left unchanged.

Recommitments were due on Friday.

Allocations are targeted to go out early in the week of June 25, the source added.

The company's $485 million credit facility also provides for a $225 million ABL revolver.

GE Capital Markets Inc., RBC Capital Markets and Wells Fargo Capital Finance are leading the deal that will be used to help fund the purchase of ThyssenKrupp Waupaca Inc. (being renamed Waupaca Foundry) by KPS Capital Partners LP from ThyssenKrupp Budd Co.

Closing is expected this quarter, subject to customary conditions.

Waupaca Foundry is a Waupaca, Wis.-based producer of gray and ductile iron castings for the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets.

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