Howden launches $925 million term loan B at Libor plus 425-450 bps

By Sara Rosenberg

New York, Sept. 5 – Howden launched on Thursday its $925 million seven-year covenant-lite term loan B (B1/B) with price talk of Libor plus 425 basis points to 450 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp., RBC Capital Markets and HSBC Securities (USA) Inc. provided the debt commitment.

Commitments are due at noon ET on Sept. 19.

Proceeds will be used to help fund the buyout of the company by KPS Capital Partners LP from Colfax Corp. for $1.8 billion, including $1.66 billion in cash consideration and $140 million in assumed liabilities and minority interest.

Other funds for the transaction will come from equity.

Closing is expected in the second half of this year, subject to customary conditions and approvals.

Howden is a Glasgow, Scotland-based provider of mission critical air and gas handling products and services to the industrial, power, oil & gas and mining industries.

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