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DexKo Global updates first- and second-lien term loan pricing
By Sara Rosenberg
New York, July 12 – DexKo Global Inc. firmed pricing on its $570 million seven-year first-lien term loan (B2/B) at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, and added a step-down to Libor plus 375 bps at 4.75 times leverage, according to a market source.
The U.S. first-lien term loan still has a 1% Libor floor and an original issue discount of 99.5.
Also, the company downsized its euro seven-year first-lien term loan (B2/B) to €350 million from €357 million, but the dollar equivalent is unchanged, the source said.
Pricing on the euro term loan finalized at Euribor plus 450 bps, the low end of the Euribor plus 450 bps to 475 bps talk.
The euro term loan still has a 0% floor and a discount of 99.5.
In addition, the company set the spread on its $250 million eight-year second-lien term loan (Caa1/CCC+) at Libor plus 825 bps, the tight end of the Libor plus 825 bps to 850 bps talk, the source continued.
The second-lien term loan continues to have a 1% Libor floor and a discount of 98.5.
As before, the first-lien term loans have 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.
Recommitments were scheduled to be due at noon ET on Wednesday, 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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