Sundyne ups spread on $535 million term loan B to Libor plus 425 bps

By Sara Rosenberg

New York, March 3 – Sundyne (Star US Bidco LLC) increased pricing on its $535 million seven-year covenant-lite first-lien term loan B to Libor plus 425 basis points from Libor plus 375 bps, and removed the step-downs of 25 bps at 5x net first-lien leverage and 25 bps step-down at an initial public offering, according to a market source.

In addition, the Libor floor was revised to 1% from 0%, the original issue discount was changed to 99 from 99.5 and the 101 soft call protection was extended to one year from six months, 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.

Recommitments were scheduled to be due at noon ET on Tuesday, 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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