Wesco Distribution increases U.S. term loan amount to $700 million

By Sara Rosenberg

New York, Nov. 29 - Wesco Distribution Inc. lifted its U.S. term loan to $700 million from $605 million and left the size of its Canadian term loan at C$150 million, according to a market source.

However, the original issue discount on the Canadian term loan was revised to 98 from 99, the source said.

The original issue discount on the U.S. term loan was left at 99.

Pricing on the U.S. term loan is Libor plus 350 basis points and pricing on the Canadian term loan is BA plus 400 bps, with both having a 1% Libor floor and 101 soft call protection for one year.

Recommitments for the roughly $850 million of new seven-year covenant-light term loans (Ba3/B+), up from around $755 million, are due by noon ET on Friday.

Credit Suisse Securities (USA) LLC, Barclays, UBS Securities LLC and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Eecol Electric Corp., a Calgary, Alta.-based full-line distributor of electrical equipment, products and services, for about C$1.14 billion.

Also, the funds from the U.S. term loan upsizing, along with $60 million of additional drawings under the company's revolvers, will be used to repay existing senior subordinated notes due 2017, the source added.

Closing is expected this quarter, subject to approval under the Canadian Competition Act.

Wesco is a Pittsburgh-based provider of electrical, industrial and communications MRO and OEM products, construction materials and advanced supply chain management and logistics services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.