WireCo launches $410 million term loan B at Libor plus 575-600 bps

By Sara Rosenberg

New York, July 13 – WireCo WorldGroup Inc. launched on Wednesday its $410 million senior secured seven-year term loan B (B2/B+) with price talk of Libor plus 575 basis points to 600 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Goldman Sachs & Co. and Scotiabank are the leads on the deal.

Commitments are due at noon ET on July 22, the source added.

The company’s $510 million credit facility also includes a $100 million ABL revolver.

Proceeds will be used to refinance the company’s capital structure and extend its debt maturities in connection with Onex Corp.’s purchase of a majority interest in WireCo.

Closing is expected later this year, subject to regulatory approval and customary conditions.

Funds managed by Paine & Partners LLC, which acquired WireCo in 2007, will maintain a significant minority stake.

WireCo is a Prairie Village, Kan.-based manufacturer of wire rope, synthetic rope, electromechanical cable and highly engineered cable structures.

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