Dexter Axle seeks new U.S. dollar and euro credit facility

By Sara Rosenberg

New York, Nov. 12 – Dexter Axle is in the market with a new credit facility that consists of a $60 million five-year revolver, a $420 million seven-year covenant-light term loan B and a €134.9 million seven-year covenant-light term loan B, according to a market source.

The term loans are talked at Libor/Euribor plus 450 basis points to 475 bps with a 1% floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. are the leads on the deal that launched with a bank meeting in London on Monday and a bank meeting in New York on Tuesday.

Commitments are due on Nov. 24, the source added.

Proceeds will be used to fund the acquisition of AL-KO Vehicle Technology from AL-KO Kober SE.

The combined company will be named DexKo Global Inc. and majority owned by funds managed by the Sterling Group, Dexter’s current majority owners.

Closing is expected at year-end.

Dexter is an Elkhart, Ind.-based designer and manufacturer of trailer axles, brakes and related components. AL-KO is a manufacturer of chassis and running gear components.

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