Shape cuts spread on $300 million term loan to Libor plus 300 bps

By Sara Rosenberg

New York, April 4 – Shape Technologies Group Inc. (Waterjet Holdings Inc.) reduced pricing on its $300 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 300 basis points from talk in the range of Libor plus 325 bps to 350 bps, according to a market source.

Also, a 25 bps step-down was added to the term loan with an upgrade to the corporate family rating to B1/B+, the source said.

The corporate family rating is currently B2/B.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are the lead arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Wednesday, the source added.

Proceeds will be used to refinance existing debt.

Shape Technologies is a Kent, Wash.-based provider of automation solutions utilizing ultra-high pressure technology.

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