Chart Industries lifts term loan to $1.43 billion, updates pricing

By Sara Rosenberg

New York, Dec. 8 – Chart Industries Inc. upsized its seven-year term loan B (Ba3/B+) to $1,434,800,000 from $1.315 billion and firmed pricing at SOFR plus 375 basis points, the low end of the SOFR plus 375 bps to 400 bps talk, according to a market source.

Also, the original issue discount on the term loan was changed to 97.5 from 97, and the ticking fees were revised to the full margin starting on day 31 from half the margin for days 31 to 60 and the full margin thereafter, the source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and PNC Capital Markets are the leads on the deal. JPMorgan is the administrative agent.

Commitments were scheduled to be due at noon ET on Thursday, accelerated from 5 p.m. ET on Thursday, the source added.

Proceeds will be used with $1.46 billion of senior secured notes, upsized from $1.31 billion, $510 million of senior unsecured notes, downsized from $750 million, and preferred stock to fund the acquisition of Howden for $4.4 billion from KPS Capital Partners LP and pay all associated costs and expenses.

The debt financing will replace a commitment for a $3.375 billion 364-day senior bridge loan.

The company’s existing convertible notes due November 2024 are expected to remain in place.

Closing is expected in the first half of 2023, subject to regulatory approvals and other customary conditions.

Chart Industries is a Ball Ground, Ga.-based manufacturer of highly engineered equipment servicing multiple applications in the energy and industrial gas markets. Howden is a U.K.-based provider of mission critical air and gas handling products and services.

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