DexKo Global to launch U.S. and euro credit facilities this week

By Sara Rosenberg

New York, June 26 – DexKo Global Inc. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Tuesday and at 1 p.m. GMT in London on Wednesday to launch new U.S. and euro credit facilities, according to a market source.

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

The facilities consist of a $150 million revolver (B2/B), a $570 million seven-year first-lien term loan (B2/B), a €357 million seven-year first-lien term loan (B2/B) and a $250 million eight-year second-lien term loan (Caa1/CCC+), the source said.

Included in the first-lien term loan debt is 101 soft call for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on July 11, the source added.

Proceeds will be used to help fund the buyout of the company by KPS Capital Partners LP.

Upon closing, DexKo’s existing controlling shareholder, the Sterling Group LP, will continue to own a minority stake in the company.

Closing is expected around mid-year, subject to customary conditions and approvals.

DexKo is a Novi, Mich.-based supplier of highly engineered running gear technology, chassis assemblies and related components.

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