Titan Acquisition lifts term loan B to $700 million, revises pricing

By Sara Rosenberg

New York, April 27 – Titan Acquisition Holdings upsized its seven-year first-lien term loan B to $700 million from $675 million and lowered pricing to SOFR plus 450 basis points from SOFR plus 475 bps, according to a market source.

In addition, a 25 bps pricing step-down was added to the term loan at 4x net first-lien leverage and the original issue discount was changed to 98.5 from talk in the range of 97 to 98, the source said.

The term loan still has a 25 bps pricing step-down upon an initial public offering, a 0% floor, 101 soft call protection for six months and ticking fees of half the spread from days 46 to 90 and the full spread thereafter.

JPMorgan Chase Bank, BNP Paribas Securities Corp., Mizuho, Wells Fargo Securities LLC and BofA Securities Inc. are the leads on the deal.

Recommitments are due at 10:30 a.m. ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by Lone Star Funds from Carlyle and Stellex Capital Management.

As a result of the term loan upsizing, the equity component of the financing was reduced.

Closing is expected this year, subject to customary conditions, including governmental approvals.

Titan is a Portland, Ore.-based provider of ship repair services and marine and heavy complex fabrication. The company was formed in 2019 through the combination of Vigor Industrial LLC and MHI Holdings LLC.

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