Aggreko revises price talk on U.S. and euro term loans

By Sara Rosenberg

New York, Oct. 14 – Aggreko plc lifted price talk on its £1 billion equivalent (roughly $1.35 billion equivalent) U.S. and euro five-year covenant-lite first-lien term loan (B1/BB-/BB+) to Libor/Euribor plus 500 basis points to 525 bps from talk in the range of Libor/Euribor plus 425 bps to 450 bps, according to a market source.

Also, the original issue discount on the U.S. and euro term loan debt widened to 98.5 from talk in the range of 99 to 99.5, the source said.

The U.S. term loan still has a 0.5% Libor floor, the euro term loan still has a 0% floor and both tranches still have 101 soft call protection for six months.

BofA Securities Inc. and Barclays are the joint global coordinators on the deal. Deutsche Bank Securities Inc., Goldman Sachs, Santander, Lloyds, SMBC and Standard Chartered are joint bookrunners.

Proceeds will be used to help fund the buyout of the company by TDR Capital LLP and I Squared Capital for 880 pence per share in cash. The transaction values the company at £2.322 billion on a fully diluted basis.

Aggreko is a U.K.-based provider of mobile power, heating and cooling solutions.

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