DexKo trims spread on $300 million term loan to SOFR plus 425 bps

By Sara Rosenberg

New York, July 21 – DexKo Global Inc. reduced pricing on its $300 million incremental first-lien term loan due Oct. 4, 2028 (B2/B-) to SOFR plus 425 basis points from talk in the range of SOFR plus 450 bps to 475 bps, according to a market source.

Furthermore, the original issue discount on the term loan was tightened to 97 from 96, the source said.

The term loan still has a 0% floor, 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, RBC Capital Markets, BofA Securities Inc., Barclays, TD Securities (USA) LLC, CIBC and BNP Paribas Securities Corp. are the lead arrangers on the deal. Morgan Stanley Senior Funding Inc. and Brookfield Capital Solutions are co-managers.

Recommitments were scheduled to be due at 11 a.m. ET on Friday, the source added.

Proceeds will be used to refinance the company’s U.S. first-lien seller term loan and repay ABL revolving credit facility borrowings.

Brookfield is the sponsor.

DexKo is a Novi, Mich.-based manufacturer and distributor of highly engineered components and systems critical to the safety and performance of a range of towable and related applications.

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