Douglas Dynamics to launch $220 million credit facility Friday

By Sara Rosenberg

New York, March 4 - Douglas Dynamics LLC is scheduled to hold a bank meeting on Friday for a proposed $220 million credit facility, according to a syndicate document. Credit Suisse First Boston is the sole lead bank and bookrunner on the deal.

The facility consists of a $50 million five-year revolver with an interest rate of Libor plus 300 basis points and a 50 basis points commitment fee, a $120 million six-year term loan B with an interest rate of Libor plus 300 basis points and a $50 million seven-year second lien term loan with an interest rate of Libor plus 650 basis points, according to the document.

Proceeds will be used to help support the leveraged buyout of Douglas Dynamics by DDL Acquisition Corp., formed by Aurora Capital Group, from AK Steel Holding Corp. The sale is subject to completion of the buyer's due diligence and customary closing conditions, as well as regulatory review. AK Steel expects to complete the sale by March 31, according to a company news release.

Douglas Dynamics is a Johnson City, Tenn., manufacturer of snow and ice removal equipment.

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