DiversiTech discloses talk on first- and second-lien term loans

By Sara Rosenberg

New York, Dec. 6 – DiversiTech released price talk on its $725 million seven-year first-lien term loan B (B2/B-), $150 million delayed-draw first-lien term loan (B2/B-) and $240 million eight-year second-lien term loan (Caa2/CCC) with its lender call on Monday, according to a market source.

Talk on the first-lien term loan debt is Libor plus 375 basis points to 400 bps with step-downs, a 0.5% Libor floor and an original issue discount of 99 to 99.5, and talk on the second-lien term loan is Libor plus 650 bps to 675 bps with step-downs, a 0.5% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 101 for one year.

The company’s $1.215 billion of senior secured credit facilities also include a $100 million revolver (B2/B-).

RBC Capital Markets, UBS Investment Bank, Barclays, Societe Generale, Citizens Bank, Natixis and Santander are the arrangers on the deal.

Commitments are due at 5 p.m. ET on Dec. 16, the source added.

Proceeds will be used to help fund the buyout of the company by Partners Group from Permira in a transaction with an enterprise value of $2.2 billion.

Other funds for the buyout will come from $1.32 billion of equity, representing about 58% of total capitalization.

As part of the transaction, Permira and management will remain minority investors in the company.

DiversiTech is an Atlanta-based manufacturer of products and components for the heating, ventilation, air conditioning and refrigeration industry.

© 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.