Innio firms U.S. term loan size at $600 million, euro at €1.1 billion

By Sara Rosenberg

New York, Dec. 12 – Innio Group set the size of its U.S. covenant-lite term loan due November 2028 at $600 million, versus initial talk of a minimum $500 million, and the size of its euro covenant-lite term loan due November 2028 at €1.1 billion, versus initial talk of a minimum €900, according to a market source. The total term loan amount being raised was outlined at launch as €1.664 billion equivalent in dollars and euros.

In addition, pricing on the term loans firmed at SOFR/Euribor plus 425 basis points, the low end of the SOFR/Euribor plus 425 bps to 450 bps talk, the source said.

Furthermore, the original issue discount talk on both term loans (B2/B+/B+) was changed to a range of 99 to 99.5 from 98.5.

Both term loans still have a 0% floor and 101 soft call protection for six months.

Proceeds will be used with balance sheet cash to amend and extend an existing $381 million term loan B due November 2025 and an existing €1.302 billion term loan B due November 2025, to fund the $40 million acquisition of Northeast-Western Energy Systems (NES-WES) from Penn Power Group and to pay a shareholder distribution.

Citigroup Global Markets Inc. is the left lead bookrunner on the U.S. loan, and BNP Paribas, Citigroup, Deutsche Bank Securities Inc. and Unicredit are joint physical bookrunners on the euro loan. BNP Paribas, Citigroup, Deutsche Bank, Morgan Stanley and Unicredit are global coordinators on the amend and extend. BofA Securities Inc., Credit Agricole, Erste and Helaba are passive bookrunners. Wilmington Trust is the agent.

Recommitments were scheduled to be due at 11 a.m. ET on Tuesday, the source added.

Pricing and allocations are expected on Wednesday morning New York time.

Closing on the acquisition is expected this quarter.

Innio, owned by Advent and Luxinva, is a Jenbach, Austria-based energy solution and service provider in the power generation and compression segments. NES-WES is a power systems integrator in the United States.

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