Boyd reworks first- and second-lien term loan pricing, call protection

By Sara Rosenberg

New York, April 15 – Boyd Corp. reduced pricing on its $365 million seven-year first-lien covenant-light term loan (B2/B) to Libor plus 425 basis points from Libor plus 500 bps and increased pricing on its $142 million eight-year second-lien term loan (Caa2/B-) to Libor plus 925 bps from Libor plus 875 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was tightened to 99˝ from 99 and the 101 soft call protection was shortened to six months from one year, the source said.

In addition, the offer price on the second-lien term loan widened to 97˝ from 98 and the call protection was changed to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two.

As before, both term loans have a 1% Libor floor.

The company’s $557 million credit facility also provides for a $50 million five-year revolver (B2/B).

Recommitments were due at 2 p.m. ET on Wednesday, the source added.

UBS AG, RBC Capital Markets LLC and BMO Capital Markets Corp. are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Genstar Capital.

Boyd is a Modesto, Calif.-based manufacturer and supplier of custom fabricated sealing and energy management components for OEMs.

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