WireCo WorldGroup to launch $460 million credit facility Thursday

By Sara Rosenberg

New York, June 13 - WireCo WorldGroup Inc. is scheduled to hold a bank meeting on Thursday to launch a proposed $460 million senior secured credit facility due Feb. 15, 2017, according to sources.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are the lead banks on the deal.

The facility consists of a $135 million revolver and a $325 million term loan B, sources said.

Pricing is still to be determined, but it is known that the revolver will have a 50 basis point unused fee and no Libor floor, and the term loan B will have a 1.25% Libor floor and 101 soft call protection for one year.

Amortization on the term loan is 1% per annum.

Covenants include net total leverage and interest coverage ratios.

There is a 50% excess cash flow sweep with step downs to 25% and 0% based on leverage.

Proceeds will be used to help fund the acquisition of Koninklijke (Royal) Lankhorst Euronete Group BV for $231.2 million and to refinance an existing senior secured credit facility.

Other funds for the transaction will come from $82.5 million of privately placed 11¾% senior unsecured notes due May 15, 2017.

Pro forma for the acquisition, total leverage will be 5.4 times and net leverage will be 5.1 times, based on pro forma adjusted EBITDA of $164.3 million for the 12-month period ended March 31.

WireCo is a Kansas City, Mo.-based manufacturer, engineer and distributor of wire, wire rope, wire rope assemblies and electromechanical cable. Koninklijke is a Netherlands-based manufacturer of ropes, industrial yarns, netting, yachting products and recycled plastic products.

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