TIP Trailer Services raises pricing on U.S. and euro term loans

By Sara Rosenberg

New York, Aug. 6 - TIP Trailer Services raised pricing on its $150 million seven-year first-lien term loan to Libor plus 475 basis points from Libor plus 425 bps and on its €163 million seven-year first-lien term loan to Euribor plus 500 bps from Euribor plus 450 bps, according to a market source.

Also, the original issue discount on both term loans was widened to 97 from 99, the source said.

The term loans still have a 1% floor and 101 soft call protection for one year.

In addition to the term loans, the company's new credit facility (B1/BB+) includes a €55 million six-year revolver.

With the pricing changes, the excess cash flow sweep in the credit agreement was revised to 75%, the source added.

Commitments are due at 5 p.m. ET on Thursday.

Credit Suisse is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by HNA Group Co. Ltd. from GE Capital.

TIP is a European provider of transport equipment leasing, rental and service solutions.

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