| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Q > Headlines for QualTek USA LLC > News item |
QualTek lowers term loan add-on to $100 million, hones talk to 98; recommitments due Wednesday
By Paul A. Harris
Portland, Ore., Oct. 1 – QualTek USA LLC downsized its fungible add-on senior secured covenant-lite term loan B due July 18, 2025 (B3/B) to $100 million from $150 million, according to a market source.
At the same time, Brightstar Capital Partners will contribute $25 million in the form of preferred equity.
A pricing update confirmed previous spread talk at Libor plus 625 basis points atop a 1% Libor floor.
Discount talk set the reoffer price at 98, the cheap end of the 98 to 99 price talk.
Recommitments are due at noon ET on Wednesday, and the add-on will be priced and allocated thereafter.
The add-on term loan has 101 soft call protection for six months and amortization of 2.5% per annum, the source said.
Negative covenants are substantially similar to the existing senior secured credit facility with the exception that usage of the ABL facility to fund acquisitions will be subject to minimum availability under the ABL of $45 million and total leverage of 4.5x.
Citigroup Global Markets Inc. and Fifth Third Bank are the joint lead arrangers on the deal. Citigroup will assume the role of administrative agent post-close from Fifth Third.
Proceeds will be used to fund acquisitions, to refinance existing debt and for general corporate purposes.
With this transaction, pricing on the company’s existing term loan B will be increased to Libor plus 625 bps from Libor plus 575 bps to match pricing on the add-on loan.
QualTek is a King of Prussia, Pa.-based provider of turnkey services to the North American telecommunications, infrastructure and power industries.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.