Sundyne launches $535 million term loan B at Libor plus 375 bps

By Sara Rosenberg

New York, Feb. 18 – Sundyne (Star US Bidco LLC) launched on Tuesday its $535 million seven-year covenant-lite first-lien term loan B with price talk of Libor plus 375 basis points with a 25 bps step-down at 5x net first-lien leverage and a 25 bps step-down at an initial public offering, a 0% Libor floor and an original issue discount of 99.5, 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.

The company’s $635 million of senior secured credit facilities (B2/B) also include a $100 million five-year revolver.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are the joint lead arrangers and bookrunners on the deal.

Commitments are due at noon ET on March 3, the source added.

Proceeds will be used to help fund the buyout of the company by Warburg Pincus from BC Partners Advisors LP and the Carlyle Group.

Closing is expected in the first half of this year, subject to regulatory approval.

Sundyne is an Arvada, Colo.-based designer and manufacturer of mission critical flow control equipment.

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