Drive Chassis launches $825 million loan at Libor plus 700-725 bps

By Sara Rosenberg

New York, April 26 – Drive Chassis Holdco LLC held a lender call at 2:30 p.m. ET on Monday to launch an $825 million senior secured covenant-lite second-lien term loan (Caa1/B) due April 10, 2026 that is talked at Libor plus 700 basis points to 725 bps with a 25 bps step-down when total secured net leverage is less than or equal to 4.75x, a 0% Libor floor and a par issue price, according to a market source.

The term loan has 101 hard call protection until April 10, 2022 and then par thereafter, the source said.

Citigroup Global Markets Inc. is the lead arranger and administrative agent on the deal.

Proceeds will be used to reprice an existing second-lien term loan down from Libor plus 825 bps with a 0% Libor floor.

With the repricing, certain modifications are being made to the covenants under the loan.

Commitment and consents are due at noon ET on Friday, the source added.

Closing is expected on May 5.

Drive Chassis is a Charlotte, N.C.-based provider of chassis equipment to the intermodal transportation industry.

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