Tomkins' Air Distribution sets first-and second-lien term loan talk

By Sara Rosenberg

New York, Oct. 19 - Tomkins' Air Distribution is talking its $525 million six-year first-lien term loan at Libor plus 400 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

And, the company's $135 million 71/2-year second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1.25% Libor floor and a discount of 98, the source said.

Included in the first-lien loan is 101 soft call protection for one year, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The $760 million credit facility also provides for a $100 million five-year revolver.

Commitments are due on Nov. 1.

RBC Capital Markets LLC, Barclays and UBS Securities LLC are the lead banks on the deal that launched with a bank meeting on Thursday.

Proceeds will be used to help fund the buyout of the company by Canada Pension Plan Investment Board and Onex Corp. from Tomkins (Pinafore Holdings BV) for about $1.1 billion.

Closing is expected in the fourth quarter, subject to customary conditions.

Leverage is 4.5 times through the first-lien and 5.7 times total, the source added.

Tomkins' Air Distribution is a manufacturer of products that are used to distribute, recycle and vent air in non-residential and residential buildings.

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