Tower Automotive sets pricing for $275 million term loan

By Paul A. Harris

Portland, Ore., April 2 - Tower Automotive Holdings USA, LLC talked its $275 million seven-year senior secured term loan B with a Libor spread of 475 basis points to 500 bps, a market source said on Tuesday.

The deal is talked with a one dollar original issue discount, features a 1.25% Libor floor and 101 soft call protection for 12 months.

Commitments are due on April 12. The deal closes and funds on April 17.

Citigroup Global Markets; Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint lead arrangers.

Security includes a perfected first-priority pledge of all equity interest in subsidiaries directly owned by each borrower and guarantor, perfected first-priority interest in all other tangible and intangible assets of each borrower and guarantor, and perfected second-priority interest in the revolving facility priority collateral.

There is a 1% per annum amortization.

Financial covenants include a maximum net leverage ratio of 3.75-times.

Proceeds will be used to prepay a portion of existing senior secured notes and existing foreign debt.

The company is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

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