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Wilsonart launches $425 million term loan at Libor plus 375 to 400 bps
By Sara Rosenberg
New York, Oct. 4 - Wilsonart International Holdings LLC launched on Thursday its $425 million term loan with price talk of Libor plus 375 basis points to 400 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.
The company's $600 million credit facility also includes a $175 million revolver.
Commitments are due on Oct. 19, the source said.
Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the deal.
Proceeds will be used to fund Clayton, Dubilier & Rice, LLC's acquisition of a 51% stake in Wilsonart, which is a newly formed subsidiary of Illinois Tool Works Inc.
Through a combination of a $395 million equity investment from Clayton, Dubilier & Rice and borrowings by Wilsonart, Illinois Tool Works will receive about $1.05 billion of cash proceeds and will retain a 49% equity interest in Wilsonart.
The equity investment will take the form of 10% cumulative convertible participating preferred units that Clayton, Dubilier & Rice will purchase from Wilsonart.
Closing is expected to occur in the fourth quarter. Approval from Illinois Tool Works' shareholders is not required.
Wilsonart makes decorative surfaces products. Illinois Tool Works makes industrial products and equipment and is based in Glenview, Ill.
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