C&D Technologies talks $400 million term B at Libor plus 500 bps area

By Sara Rosenberg

New York, Nov. 29 – C&D Technologies Inc. launched on Thursday its $400 million seven-year covenant-light first-lien term loan B (B3) with price talk in the Libor plus 500 basis points area with a 0% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, ING and KeyBanc Capital Markets are the lead arrangers on the deal.

Commitments are due at noon ET on Dec. 13, the source added.

Proceeds will be used to help fund the acquisition of Trojan Battery Co. LLC from Charlesbank Capital Partners and to refinance existing debt.

Other funds for the transaction will come from a subordinated sponsor subscription facility, ABL borrowings and a cash contribution from KPS Capital Partners.

C&D, a KPS portfolio company, is a Blue Bell, Pa.-based manufacturer and servicer of industrial lead acid batteries and battery systems. Trojan is a Santa Fe Springs, Calif.-based manufacturer, marketer and distributor of industrial deep-cycle batteries for both the motive and stationary power markets.

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