Howden wraps $900 million term loan B at Libor plus 525 bps

By Sara Rosenberg

New York, Sept. 26 – Howden finalized pricing on its $900 million seven-year covenant-lite term loan B at Libor plus 525 basis points, the high end of revised talk of Libor plus 500 bps to 525 bps and wide of initial talk in the range of Libor plus 425 bps to 450 bps, according to a market source.

The term loan has a 0% Libor floor, an original issue discount of 97 and 101 soft call protection for one year.

Earlier in syndication, the term loan was downsized from $925 million, the discount was changed from 99, the call protection was extended from six months, and modifications were made to MFN, incremental, excess cash flow sweep, restricted payments and the EBITDA definition.

The company’s $1.325 billion of credit facilities also include a $150 million revolver and a $275 million letter-of-credit facility.

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

Allocations went out on Wednesday.

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 $300 million of senior notes and equity.

To compensate for the smaller term loan B, the company will draw on its revolver.

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.

© 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.