Madison IAQ firms $715 million incremental term loan at 99.25 OID

By Sara Rosenberg

New York, July 20 – Madison IAQ finalized the original issue discount on its fungible $715 million incremental first-lien term loan (B1/B) due June 2028 at 99.25, compared to initial talk in the 99 area plus or minus 0.25 point, according to a market source.

Pricing on the incremental term loan is Libor plus 325 basis points with a 0.5% Libor floor, in line with existing term loan pricing.

Also, like the existing term loan, the incremental term loan has 101 soft call protection through December 2021 and amortization of 1% per annum.

Goldman Sachs Bank USA is the bookrunner on the deal.

Proceeds will be used with $75 million of cash from the balance sheet and $320 million of new equity from Madison Industries to fund the acquisition of Big Ass Fans.

Closing is expected during the week of July 26.

Madison IAQ is a provider of indoor air quality solutions. Big Ass Fans is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

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