Tensar International ups spreads on first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 24 - Tensar International Corp. Inc. increased pricing on its $190 million five-year first-lien term loan B (B1/B) to Libor plus 750 basis points from Libor plus 700 bps and on its $110 million 51/2-year second-lien term C (Caa1/CCC+) to Libor plus 1,175 bps from Libor plus 1,000 bps, according to a market source.

Also, the first-and second-lien term loans are now being sold at an original issue discount of 95, the source said. Previously, the first-lien term loan was talked at 97, and the second-lien loan was talked at 96.

The 1.75% Libor floor on both term loans was left unchanged.

As before, the first-lien term loan B has 101 call protection for one year, while the second-lien term loan C is non-callable for one year, then at 102 in year two and 101 in year three.

The company's $325 million credit facility also includes a $25 million four-year ABL revolver that has grid-based pricing ranging from Libor plus 250 bps to 300 bps and a 50 bps unused fee.

Commitments are due by the end of the week.

Barclays Capital Inc. is the lead bank on the deal.

Proceeds will be used to refinance the company's existing capital structure.

Tensar is an Atlanta-based provider of specialty products and engineering services used in the development of commercial, residential, industrial and municipal sites as well as in transportation infrastructure.

© 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.