Cooper-Standard Automotive term B expected to price in the Libor plus 275 bps area

By Sara Rosenberg

New York, Sept. 28 - Cooper-Standard Automotive's proposed $500 million term loan B is expected to launch in October with price talk in the Libor plus 275 basis points area, according to a market source.

Deutsche Bank and Lehman Brothers are joint lead arrangers and joint bookrunners on the deal, with Deutsche listed on the left. Goldman Sachs and UBS are co-documentation agents.

The $625 million facility also contains a $125 million revolver.

Proceeds will be used to help fund the acquisition of Cooper-Standard by an entity formed by The Cypress Group and Goldman Sachs Capital Partners from Cooper Tire & Rubber Co. for about $1.165 billion in cash.

As part of the leveraged buyout financing package, Cooper-Standard also plans on approaching the high-yield market with a $400 million bond offering via joint book running managers Deutsche Bank, Lehman Brothers, Goldman Sachs, and UBS, the source added.

The transaction, which is subject to financing and regulatory approvals, is expected to close in the fourth quarter.

Cooper-Standard Automotive is a Novi, Mich.-based manufacturer of fluid handling systems, body sealing systems, and active and passive vibration control systems, primarily for automotive original equipment manufacturers.

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