Duravant launches $125 million term loan at 99.25-99.5 OID

By Sara Rosenberg

New York, Jan. 29 – Duravant LLC (Engineered Machinery Holdings Inc.) was scheduled to hold a lender call at 2 p.m. ET on Monday to launch a fungible $125 million incremental first-lien term loan due May 21, 2028 that is talked with an original issue discount of 99.25 to 99.5, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 375 basis points with a 25 bps step-down at less than 5x senior secured first-lien net leverage and a 0.75% floor, in line with existing term loan pricing.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Jefferies LLC, Societe Generale, UBS Investment Bank, Citigroup Global Markets Inc., KeyBanc Capital Markets, MUFG, Antares Capital, Fifth Third and Rabobank are the lead arrangers on the deal.

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

Proceeds will be used to repay outstanding revolving credit facility borrowings and to add cash to the balance sheet.

Duravant is a Downers Grove, Ill.-based automation solutions company providing highly engineered equipment and related aftermarket parts and services.

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