Tank cuts spread on $240 million term loan B to Libor plus 500 bps

By Sara Rosenberg

New York, Dec. 17 – Tank Holding Corp. reduced pricing on its $240 million incremental covenant-lite first-lien term loan B (B2/B-) due March 2026 to Libor plus 500 basis points from Libor plus 550 bps, according to a market source.

In addition, the original issue discount on the term loan was modified to 98.5 from 98, the source said.

The incremental term loan still has a 0.75% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc. is the lead on the deal.

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

Allocations are expected on Friday.

Proceeds will be used with a privately placed incremental second-lien term loan to fund a dividend to shareholders and tuck-in acquisitions under letters of intent.

Alongside the new loan, the company is seeking an amendment to its existing $518 million first-lien term loan B.

Lenders are offered a 25 bps amendment fee.

Tank Holding is a Lincoln, Neb.-based manufacturer of rotationally molded poly and welded steel bulk storage and material handling products.

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