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DiversiTech revises OID on $325 million first-lien term loan to 99.75
By Sara Rosenberg
New York, May 18 – DiversiTech Holdings Inc. modified the original issue discount on its $325 million seven-year covenant-light first-lien term loan (B2/B+) to 99.75 from talk in the range of 99 to 99.5, according to a market source.
Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor, and the tranche has 101 soft call protection for six months.
Earlier in syndication, the spread on the first-lien term loan was reduced from Libor plus 375 bps.
The company’s $495 million of senior secured credit facilities also provide for a $50 million five-year revolver (B2/B+) and a $120 million eight-year second-lien term loan (Caa2/CCC+).
Pricing on the second-lien term loan was unchanged at Libor plus 750 bps with a 1% Libor floor and a discount of 99, and the loan still has call protection of 102 in year one and 101 in year two.
Another change announced on Thursday was that both the first- and second-lien term loans saw MFN set for life, versus 12 months previously, the source said.
RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc. and SG Americas Securities LLC are the joint lead arrangers and bookrunners on the deal, with RBC the left lead on the first-lien debt and Barclays the left lead on the second-lien debt. RBC is the administrative agent on all of the tranches.
Commitments were scheduled to be due at noon ET on Thursday, the source added.
Proceeds will be used to help fund the buyout of the company by Permira Funds from the Jordan Co. LP.
Closing is expected this quarter, subject to customary regulatory approvals and conditions.
DiversiTech is a Duluth, Ga.-based manufacturer of components and products related to the heating, ventilating, air conditioning and refrigeration industry.
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