Dayton talks term loan at Libor plus 425 bps to 450 bps, revolver at Libor plus 225 bps

By Sara Rosenberg

New York, Feb. 6 - Dayton Superior Corp. price talk surfaced ahead of the Thursday bank meeting that will launch the $250 million credit facility into syndication, according to a market source.

The $100 million six-year term loan (B1/BB-) is being talked at Libor plus 425 basis points to 450 bps, with an original issue discount of 98, and the $150 million asset-based revolver is being talked at Libor plus 225 bps, with a 37.5 bps commitment fee, the source said.

The company had previously outlined expected pricing in filings with the Securities and Exchange Commission, saying that the term loan was expected at Libor plus 375 bps, while expected pricing on the revolver was in line with current talk.

Financial covenants will include a maximum leverage ratio and a minimum interest coverage ratio.

GE Capital is the lead bank on the deal.

Proceeds will be used to refinance the company's existing $130 million revolver and retire its 10¾% senior second secured notes due in September 2008.

Upon completion of the refinancing, drawdowns against the new revolver are expected to be about $65 million.

Dayton Superior is a Dayton, Ohio-based provider of specialized products for the non-residential concrete construction market.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.