Zekelman launches $100 million incremental loan, term B repricing

By Sara Rosenberg

New York, Jan. 23 – Zekelman Industries launched on its lender call on Monday a $100 million incremental term loan B due June 14, 2021 and a repricing of its existing $821 million term loan B due June 14, 2021, according to a market source.

Price talk on the incremental and repriced loans is Libor plus 400 basis points to 425 bps with a 1% Libor floor and a par issue price, the source said.

The debt includes 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA is the lead bank on the deal.

Commitments are due at 5 p.m. ET on Friday, the source added.

Proceeds from the incremental loan will be used for mergers and acquisitions and general corporate purposes, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Closing is targeted for mid-February.

Zekelman Industries, formerly known as JMC Steel, is a Chicago-based manufacturer of industrial steel pipe and tubular products.

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