Vertiv ups term loan to $2.32 billion, flexes to Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 30 – Vertiv (Cortes NP Acquisition Corp.) upsized its seven-year first-lien term loan to $2.32 billion from $2,285,000,000 and increased pricing to Libor plus 500 basis points from Libor plus 400 bps, according to a market source.

Also, the original issue discount talk on the term loan was revised to a range of 97 to 97.5 from 99, the 101 soft call protection was extended to one year from six months and the MFN sunset was eliminated, the source said.

The term loan still has a 1% Libor floor.

Included in the loan is a ticking fee of half the spread after 30 days and the full spread starting on day 61.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds from the term loan and $750 million in senior notes will be used to help fund the acquisition by Platinum Equity and a group of co-investors of a majority stake in the company from Emerson.

Funds from the loan upsizing will be used for fees and expenses, the source added.

The transaction is valued at $4 billion.

Closing is expected by Dec. 31, subject to customary regulatory approvals.

Vertiv is a Columbus, Ohio-based provider of thermal management, A/C and D/C power, transfer switches, services and information management systems for the data center and telecommunications industries.

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