Canam Steel launches $310 million term loan B at Libor plus 525 bps

By Sara Rosenberg

New York, June 14 – Canam Steel Corp. (Canaveral Holdings B Inc.) launched on Wednesday its $310 million seven-year covenant-light first-lien term loan B (B3/B) with price talk of Libor plus 525 basis points with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are the leads on the deal.

Commitments are due on June 27, the source added.

Proceeds will be used to fund the acquisition of Canam by American Industrial Partners, members of the Dutil family, Caisse de depot et placement du Quebec and Fonds de solidarite FTQ for a cash consideration of $12.30 per share.

Closing is expected near the end of this month.

Canam is a Quebec-based fabricator of steel components.

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