TI Automotive trades up on buyout news; Dynacast updates first- and second-lien pricing

By Sara Rosenberg

New York, Jan. 27 – TI Automotive’s term loan headed higher in the secondary market on Tuesday following an announcement that the company is being acquired by Bain Capital.

Meanwhile, in the primary market, Dynacast International reduced pricing on its first-lien term loan while sweeting the call protection, and finalized the original issue discount on its second-lien term loan at the wide end of guidance.

TI Automotive gains

TI Automotive’s term loan was stronger with news that the company is being bought out by Bain Capital for an undisclosed sum, according to a trader.

The term loan was quoted at 99¼ bid, par offered, up from 99 bid, 99¾ offered, the trader said.

The company has obtained a financing commitment to help fund the transaction.

Closing on the buyout is expected in mid-year, subject to approval from TI Automotive shareholders, a substantial majority of which have pledged to support the deal, regulatory review and other customary conditions.

Goldman Sachs & Co. and UBS Securities LLC are serving as financial advisors to Bain. Blackstone Advisory Partners is serving as financial advisor to an ad hoc group of shareholders of TI Automotive.

TI Automotive is an Auburn Hills, Mich.-based provider of fluid storage, carrying and delivery systems to automotive manufacturers.

Dynacast tweaks deal

Moving to the new deal front, Dynacast trimmed the spread on its $530 million seven-year first-lien term loan (Ba3/B) to Libor plus 425 basis points from talk of Libor plus 450 bps to 475 bps and extended the 101 soft call protection to one year from six months, a market source said.

As before, the first-lien term loan has a 1% Libor floor and an original issue discount of 99.

Regarding the company’s $170 million eight-year second-lien term loan (Caa1/B-), pricing remained at Libor plus 850 bps with a 1% Libor floor, but the original issue discount firmed at 98, the wide end of the 98 to 98½ talk, the source remarked.

The second-lien term loan still has call protection of 102 in year one and 101 in year two.

Recommitments were due on Tuesday, the source added.

Dynacast being acquired

Proceeds from Dynacast’s credit facility will be used to help fund its buyout by Partners Group in a transaction with an overall enterprise value of $1.1 billion.

Partners Group is buying Dynacast from existing financial investors and is joined in the acquisition by Kenner & Co., an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction.

J.P. Morgan Securities LLC, Barclays and Macquarie Capital are leading the $700 million of new term loans.

Closing is expected in February, subject to regulatory approvals and customary conditions.

Dynacast is a Charlotte, N.C.-based manufacturer of small, highly complex metal components.

© 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.