United Components sets May 5 launch for $330 million term loan D

By Sara Rosenberg

New York, April 25 - United Components Inc. has scheduled a bank meeting for May 5 to launch its proposed $330 million term loan D (B2/BB-), according to a market source.

Lehman and JPMorgan are joint lead arrangers on the deal, with Lehman on the left.

Proceeds from the new term loan D will be used to finance the $154.7 million acquisition of ASC Industries Inc. and to repay United Components' existing $217 million term loan C.

The company has an existing revolving credit facility that will stay in place.

Completion of the acquisition, which was announced in March, is subject to regulatory approval and other customary closing conditions.

Pro forma leverage following the acquisition will be 4.3x, up from 3.9x as of Dec. 31, 2005.

United Components is an Evansville, Ind., auto parts manufacturer. ASC is a North Canton, Ohio, automotive water pump manufacturer.

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