WireCo $335 million term allocates, trades to 991/2, par ½

By Paul A. Harris

Portland, Ore., June 28 - WireCo WorldGroup Inc. priced its upsized $335 million term loan B at 99 on Thursday and allocated the deal, which traded to 99½ bid, par ½ offered, according to a market source.

The loan was upsized from $325 million.

Also, pricing on the term loan B was decreased to Libor plus 475 basis points from the Libor plus 500 bps area and the original issue discount tightened to 99 from 981/2, the source said.

The term loan's 1.25% Libor floor and 101 soft call protection for one year were left unchanged.

The $480 million credit facility also features a revolver, which was upsized to $145 million from $135 million, according to a market source.

The revolver has a 50 bps unused fee.

Covenants include net total leverage and interest coverage ratios.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are the lead banks on the $480 million senior secured credit facility (Ba2/BB-) due Feb. 15, 2017.

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.

As a result of the upsized term loan, less will be drawn under the revolver at close, the source added.

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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