Autokiniton launches $400 million term loan at Libor plus 525-550 bps

By Sara Rosenberg

New York, Sept. 9 – Autokiniton Global Group launched on Monday its $400 million incremental first-lien term loan (B2/B+) due May 2025 with price talk of Libor plus 525 basis points to 550 bps with a 0% Libor floor and an original issue discount of 98.5, 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 $525 million of senior secured credit facilities also include a $125 million incremental asset-based revolver.

Goldman Sachs Bank USA, BofA Securities, Inc., Barclays, RBC Capital Markets and KKR Capital Markets are the joint lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Sept. 19, the source continued.

Proceeds will be used to help fund the acquisition of Tower International Inc. for $31.00 per share in cash. Including Tower’s debt and pension related liabilities, the total value of the transaction is about $900 million.

Other funds for the transaction will come from $267 million of equity.

Closing is expected in September or October, subject to the tender of at least a majority of the outstanding shares of Tower common stock and the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

In connection with this transaction, existing lenders are being approached with an opportunistic amendment, the source added.

Autokiniton, a portfolio company of KPS Capital Partners, is a New Boston, Mich.-based supplier of metal-formed components and complex assemblies to the automotive industry. Tower is a Livonia, Mich.-based manufacturer of engineered automotive structural metal components and assemblies.

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