Autokiniton retranches to $250 million term B, $100 million term A

By Sara Rosenberg

New York, Sept. 25 – Autokiniton Global Group will now get a $250 million term loan B (B2/B+) due May 2025 instead of a $400 million incremental term loan B due May 2025, and has added a $100 million pre-placed term loan A due March 2024 to its capital structure, according to a market source.

Also, pricing on the term loan B was increased to Libor plus 575 basis points from talk in the range of Libor plus 525 bps to 550 bps and the original issue discount talk was revised to a range of 95 to 96 from 98.5, the source said.

The 101 soft call protection on the term loan B was extended to one year from six months, and amortization was increased to 2.5% in year one and 5% per annum onwards from 1% per annum.

The term loan B still has a 0% Libor floor.

Pricing on the term loan A is Libor plus 525 bps with a 0% Libor floor.

The term loan A has 101 soft call protection for six months, and amortization of 2.5% in year one, 7.5% in year two and 10% per annum onwards, the source continued.

Other changes included adding 50 bps MFN for life with no carve-outs on the new term loans, reducing the pari debt incurrence test to 3x net first-lien leverage from 3.8x, reducing the unlimited restricted payments to 2.3x net total leverage from 2.55x, and reducing unlimited investments to 2.8x net total leverage from 3.05x.

As before, the company is also getting a $125 million incremental ABL revolving credit facility.

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

Recommitments are due at 5 p.m. ET on Thursday, the source added.

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 equity.

Closing is subject to the tender of at least a majority of the outstanding shares of Tower common stock and regulatory approval.

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

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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