Key Safety sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, July 8 – Key Safety Systems Inc. released price talk on its $420 million seven-year first-lien term loan (Ba2/B+) and $100 million eight-year second-lien term loan (B2/B) with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $600 million credit facility also includes an $80 million revolver (Ba2/B+).

Commitments are due on July 22, the source added.

UBS AG, Citigroup Global Markets Inc. and Nomura are the joint bookrunners on the deal.

Proceeds will be used to fund the buyout of Key Safety Systems by FountainVest Partners from Crestview Partners.

Key Safety Systems is a Sterling Heights, Mich.-based supplier of automotive safety restraint systems and components.

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