DexKo to launch $2.21 billion equivalent of term loans on Monday

By Sara Rosenberg

New York, Sept. 10 – DexKo Global Inc. is scheduled to hold a lender call at 10 a.m. ET on Monday to launch a $960 million seven-year covenant-lite first-lien term loan B and a $1.25 billion equivalent euro seven-year covenant-lite first-lien term loan B, according to a market source.

Credit Suisse is the physical bookrunner and agent on the deal. Other bookrunners include Deutsche Bank Securities Inc., BMO Capital Markets, BofA Securities Inc., Barclays, BNP Paribas Securities Corp., CIBC, Goldman Sachs, RBC Capital Markets and TD Securities.

The U.S. term loan includes a $160 million delayed-draw piece, and the euro term loan includes a $120 million equivalent delayed-draw piece, the source said.

Both term loans have 101 soft call protection for six months.

Amortization on the U.S. term loan is 1% per annum. The euro term loan has no amortization.

Commitments are due at noon ET on Sept. 23, the source added.

Proceeds will be used to help fund the acquisition of the company by Brookfield Business Partners LP from KPS Capital Partners LP for $3.4 billion, and pay transaction fees and expenses.

DexKo is a Novi, Mich.-based producer of highly engineered products critical to safety and performance of towable industrial trailer and recreational trailer applications.

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