Duravant reveals first- and second-lien term loan price talk

By Sara Rosenberg

New York, July 29 – Duravant LLC (Engineered Machinery Holdings Inc.) released price talk on its $1.135 billion incremental first-lien term loan due May 21, 2028 and fungible $375 million incremental second-lien term loan due May 21, 2029 in connection with its lender call on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points with two 25 bps step-downs at first-lien net leverage of 4.75x and 4.25x and one 25 bps initial public offering-based step-down, a 0.75% Libor floor and an original issue discount of 99.5, the source said.

Pricing on the incremental second-lien term loan is Libor plus 650 bps with a 0.75% Libor floor and the new debt is talked with a par issue price.

The incremental first-lien term loan has 101 soft call protection for six months, and the incremental second-lien term loan has the same 102, 101 hard call protection as the existing second-lien loan.

Portability is available for two years, subject to pro forma senior secured net leverage of 7x, a sponsor with assets under management of over $1 billion and a 30% minimum equity requirement, the source continued.

Jefferies LLC is the left lead arranger on the deal.

Commitments are due at 2 p.m. ET on Aug. 5, the source added.

Proceeds will be used to refinance existing near-term maturities and fund a shareholder distribution.

Duravant is a Downers Grove, Ill.-based automation solutions company providing highly engineered equipment and related aftermarket parts and services.

© 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.