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DexKo reveals price talk on $2.21 billion equivalent of term loans
By Sara Rosenberg
New York, Sept. 13 – DexKo Global Inc. released price talk on its $960 million seven-year covenant-lite first-lien term loan B and $1.25 billion equivalent euro seven-year covenant-lite first-lien term loan B with its lender call on Monday, according to a market source.
Talk on the U.S. term loan is Libor plus 400 basis points to 425 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the euro term loan is Euribor plus 425 bps with a 0% floor and a discount of 99.5, the source said.
Both term loans have 25 bps pricing step-downs at 0.5x and 1x inside closing first-lien net leverage, and 101 soft call protection for six months.
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.
Ticking fees on the delayed-draw term loans are half the margin from days 61 to 180 and the full margin thereafter, the source continued.
Amortization on the U.S. term loan is 1% per annum. The euro term loan has no amortization.
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.
Commitments are due at noon ET on Sept. 23.
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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