Mark IV completes amendment to revise change-of-control, increase pricing

By Sara Rosenberg

New York, Dec. 20 - Mark IV Industries Inc.'s credit facility amendment passed, modifying change-of-control provisions and raising pricing, according to a market source.

With this amendment, when Sun Capital acquires the company from BC Partners, the credit facility would remain in place, just with different covenants and higher spreads.

Under the amendment, pricing on the term loan A and the revolver was increased to Libor plus 425 basis points, pricing on the first-lien term loan was increased to Libor plus 450 bps and pricing on the second-lien term loan was increased to Libor plus 850 bps, the source said.

Prior to the amendment, the first-lien term loan was priced at Libor plus 250 bps and the second-lien term loan was priced at Libor plus 575 bps.

During the amendment process, it was suggested that first-lien term loan pricing go up to Libor plus 375 bps and second-lien pricing go up to Libor plus 750 bps, but spreads were further increased in order to get lenders on board.

The amendment also provides lenders with a $75 million paydown across the term loan A and the term loan B, and the Sun Capital equity check has been increased, the source remarked.

Mark IV is an Amherst, N.Y., manufacturer of engineered systems and components for the automotive, industrial and transportations markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.