TI Automotive sets term B tranches at $965 million and €325 million

By Sara Rosenberg

New York, June 29 – TI Automotive Ltd. finalized its seven-year U.S. term loan B (Ba3/BB) at $965 million and its seven-year euro term loan B (Ba3/BB) at €325 million, according to a market source.

At launch, the U.S. term loan was sized at €620 million equivalent and the euro term loan was sized at €450 million. The term loan B debt was then upsized by $100 million when the company’s unsecured notes offering was downsized to $450 million from $550 million.

Pricing on the term loan B debt is Libor/Euribor plus 350 basis points with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year.

The company’s credit facility also includes a $125 million five-year revolver (Ba3/BB) and a $100 million asset-based revolver.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Mizuho Securities USA Inc., Goldman Sachs Bank USA, RBC Capital Markets LLC, UBS AG and Nomura are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Bain Capital.

Closing 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.

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

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