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Wilsonart upsizes term loan to $725 million, flexes price talk higher
By Sara Rosenberg
New York, Oct. 19 - Wilsonart International Holdings LLC increased its term loan to $725 million from $425 million and revised price talk to Libor plus 425 basis points to 450 bps from Libor plus 375 bps to 400 bps, according to market sources.
The 1.25% Libor floor and original issue discount of 99 were left unchanged, sources said.
The loan has 101 soft call protection for one year.
Also included in the company's now $900 million credit facility is a $175 million revolver.
Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the deal.
Proceeds will be used to fund Clayton, Dubilier & Rice, LLC's acquisition of a 51% stake in Wilsonart, which is a newly formed subsidiary of Illinois Tool Works Inc.
As a result of the term loan upsizing, plans for a $300 million high-yield bond offering were cancelled, sources added.
Through a combination of a $395 million equity investment from Clayton, Dubilier & Rice and borrowings by Wilsonart, Illinois Tool Works will receive about $1.05 billion of cash proceeds and will retain a 49% equity interest in Wilsonart.
The equity investment will take the form of 10% cumulative convertible participating preferred units that Clayton, Dubilier & Rice will purchase from Wilsonart.
Closing is expected to occur in the fourth quarter. Approval from Illinois Tool Works' shareholders is not required.
Wilsonart makes decorative surfaces products. Illinois Tool Works makes industrial products and equipment and is based in Glenview, Ill.
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