Key Safety amendment would lift term loan spread to Libor plus 425 bps

By Sara Rosenberg

New York, Feb. 23 – Key Safety Systems is offering lenders a pricing increase on its term loan to Libor plus 425 basis points with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor as part of its amendment that would allow for a change of control in connection with its acquisition by Ningbo Joyson Electronic Corp., according to a market source.

In addition, the term loan will get 101 soft call protection for six months, and lenders will be paid a 50 bps consent fee for the amendment, the source said.

Consents are due on March 8.

UBS AG is the lead bank on the amendment that launched with a call on Tuesday.

Ningbo Joyson Electronic is buying Key Safety from FountainVest Partners, the Canada Pension Plan Investment Board, Crestview Partners and members of management in a cash transaction valued at about $920 million.

Closing on the acquisition is expected in the first half of this year, subject to regulatory filings, approvals and other customary conditions.

Key Safety is a Sterling Heights, Mich.-based supplier of advanced engineered safety products for automotive and non-automotive markets. Ningbo Joyson is a Ningbo, China-based automotive supplier.

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