Madison IAQ trims loan to $1.83 billion, flexes to Libor plus 325 bps

By Sara Rosenberg

New York, June 15 – Madison IAQ downsized its seven-year first-lien term loan (B1/B) to $1.825 billion from $1.925 billion and lowered pricing to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

Also, the company added a 25 bps step-down to the term loan at 3.6x net first-lien leverage and changed the original issue discount to 99.5 from 99, the source said.

The term loan still has a 0.5% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., CIBC, Barclays, BofA Securities Inc., HSBC Securities (USA) Inc., MUFG, Capital One, Golub and Stifel are the lead arrangers on the deal.

Commitments were scheduled to be due at 5 p.m. ET on Tuesday, the source added.

Proceeds will be used with $700 million of senior secured notes, upsized from $600 million, $1.035 billion of senior unsecured notes, upsized from $885 million, and equity from Madison Industries to fund the acquisition of Nortek Air from Melrose Industries plc and refinance Madison IAQ’s existing debt.

Closing is expected this summer.

Madison IAQ is a provider of indoor air quality solutions. Nortek Air is a provider of critical air management, thermal and HVAC solutions.

© 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.