Dexter Axle talks $185 million term loan B at Libor plus 500-525 bps

By Sara Rosenberg

New York, Oct. 11 - Dexter Axle launched on Thursday its $185 million six-year term loan B with price talk of Libor plus 500 basis points to 525 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The company's $210 million credit facility also includes a $25 million five-year revolver.

BNP Paribas Securities Corp. is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by Sterling Group from Pinafore Holdings BV for about $360 million.

Other funds for the transaction will come from $60 million of mezzanine debt.

Closing is expected in the fourth quarter, subject to customary conditions.

Dexter Axle is an Elkhart, Ind.-based manufacturer of trailer axle, brake and suspension assemblies and related replacement parts and components.

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