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Filtration Group retranches, cuts first- and second-lien loan pricing
By Sara Rosenberg
New York, Nov. 14 - Filtration Group Corp. upsized its seven-year covenant-light first-lien term B (B1/B+) to $605 million from $565 million and downsized its eight-year covenant-light second-lien term loan (Caa1/B-) to $215 million from $235 million, according to a market source.
Also, pricing on the first-lien term loan was reduced to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps, and pricing on the second-lien term loan was trimmed to Libor plus 725 bps from talk of Libor plus 775 bps to 800 bps, the source said.
In addition, a pricing step-down was added to the first-lien term loan to Libor plus 325 bps when first-lien leverage is less than 4 times, the original issue discount on the first-lien loan was tightened to 99½ from 99, and the discount on the second-lien loan was revised to 99 from 981/2, the source said.
As before, both term loans have a 1% Libor floor, the first-lien loan has 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.
The company's now $895 million credit facility, up from $875 million, also provides for a $75 million five-year revolver (B1/B+).
Commitments were due at the end of the day on Thursday.
Goldman Sachs Bank USA and BMO Capital Markets Corp. are the lead banks on the deal.
Proceeds will be used to help fund the acquisition of Porex Corp. from Aurora Capital Group.
Due to the increase in the total amount of the term loan borrowings, the equity contribution for the acquisition is being reduced, the source added.
Filtration Group is a Chicago-based developer, designer and manufacturer of liquid, air and fluid filtration solutions. Porex is a Fairburn, Ga.-based developer, manufacturer and distributor of porous polymer products.
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