Material Handling ups term loan to $1.46 billion, widens pricing

By Sara Rosenberg

New York, June 7 – Material Handling Systems (Project Castle) upsized its seven-year term loan B to $1.46 billion from $1.425 billion and increased pricing to SOFR plus 550 basis points from SOFR plus 500 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 89 from talk in the range of 96 to 97 and revisions were made to documentation.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., RBC Capital Markets, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Stifel, SMBC, KeyBanc Capital Markets and Citizens are the leads on the deal.

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

Proceeds will be used to help fund the company’s merger with Fortna, and the funds from the upsizing will be used to fund the original issue discount.

Both companies are owned by Thomas H. Lee Partners LP. Upon closing, Thomas H. Lee will remain the majority owner of the combined company and a wholly owned subsidiary of the Abu Dhabi Investment Authority will acquire a significant minority stake to support the combination.

Closing is subject to customary conditions and regulatory approvals.

Material Handling is a Louisville, Ky.-based provider of material handling automation technology and systems integration. Fortna is an Atlanta-based software and solutions provider for warehouse and distribution.

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