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Tomkins reduces pricing on term loan B to Libor plus 300 bps
By Sara Rosenberg
New York, Feb. 10 - Tomkins Ltd. lowered pricing on its term loan B to Libor plus 300 basis points from Libor plus 325 bps, while leaving the 1.25% Libor floor unchanged, according to a market source.
This transaction is a repricing of the company's existing term loan B, which is currently at Libor plus 450 bps with a 1.75% floor.
Also under the amendment, pricing on the company's term loan A would reduce to Libor plus 300 bps with a 1.25% Libor floor from Libor plus 425 bps with a 1.75% floor.
With the change to term loan B pricing, the company also said that it is revising the maximum capital expenditures requirement to $175 million. It was previously at $150 million, the source said.
All other terms of the amendment were left unchanged.
As was previously reported, the amendment is changing the net total leverage so that starting with the fourth quarter of 2012, it will be 5.25 times and stay there until maturity. Under the current terms, the ratio is 6.1 times at fourth quarter 2010 with a step-down to 3.25 times at the fourth quarter of 2014.
Also, the interest coverage ratio would become 2.1 times at the fourth quarter of 2012 and stay there through maturity. Under the current terms, the ratio is 1.8 times at the fourth quarter of 2010 with step-ups to 2.75 times over four years.
Lastly, the $400 million accordion feature would become available at a first-lien secured leverage ratio of 3.5 times, instead of at a ratio of 2.25 times.
Citigroup Global Markets Inc., Bank of America, Barclays Capital Inc., RBC Capital Markets Corp. and UBS Securities LLC are leading the amendment.
Recommitments are due at noon on Friday.
Existing lenders are getting paid the 101 soft call protection that the term loan B currently carries.
Tomkins is a Denver-based engineering and manufacturing group providing products for the industrial, automotive and building products markets.
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