Autokiniton launches $1.16 billion term loan at SOFR plus 400-425 bps

By Sara Rosenberg

New York, Jan. 16 – Autokiniton US Holdings Inc. held a lender call at 1 p.m. ET on Tuesday to launch a $1.155 billion senior secured covenant-lite term loan B due April 6, 2028 that is talked at SOFR+CSA plus 400 basis points to 425 bps with a 25 bps step-down at 2.61x net first-lien leverage, a 0.5% floor and a par issue price, according to a market source.

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

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

Expected term loan ratings are B2/B.

Citigroup Global Markets Inc. is the lead arranger on the deal and the agent.

Proceeds will be used to reprice an existing term loan down from SOFR+ARRC CSA plus 450 bps with a 25 bps step-down at 2.61x net first-lien leverage and a 0.5% floor.

Commitments from existing lenders are due at 5 p.m. E on Thursday and new lender commitments are due at noon ET on Friday, the source added.

Autokiniton is a New Boston, Mich.-based provider of automotive components and assembly solutions.

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