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DexKo Global sets first- and second-lien term loan talk with launch
By Sara Rosenberg
New York, June 27 – DexKo Global Inc. released price talk on its $570 million seven-year first-lien term loan (B2/B), €357 million seven-year first-lien term loan (B2/B) and $250 million eight-year second-lien term loan (Caa1/CCC+) in connection with its New York bank meeting on Tuesday, according to a market source.
A bank meeting for European investors will take place at 8 a.m. ET in London on Wednesday.
The U.S. first-lien term loan is talked at Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99.5, the euro first-lien term loan is talked at Euribor plus 450 bps to 475 bps with a 0% floor and a discount of 99.5, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 98.5, the source said.
Included in the first-lien term loans is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.
The credit facilities also provide for a $150 million revolver (B2/B).
Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are the lead arrangers on the deal.
Commitments are due at 5 p.m. ET on July 11.
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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