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Wilsonart sets pricing on $725 million term loan at Libor plus 425 bps
By Sara Rosenberg
New York, Oct. 24 - Wilsonart International Holdings LLC firmed pricing on its $725 million term loan at Libor plus 425 basis points, the tight end of the revised Libor plus 425 bps to 450 bps talk, according to a market source. Initial talk at launch had been Libor plus 375 bps to 400 bps.
As before, the loan, which was upsized earlier from $425 million, has a 1.25% Libor floor and original issue discount of 99.
The term loan also includes 101 soft call protection for one year.
The company's $900 million credit facility (B2/B+) provides for a $175 million revolver as well.
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 canceled.
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 this 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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