Transtar upsizes first-lien term loan, trims second-lien loan

By Sara Rosenberg

New York, Oct. 2 - Transtar Holding Co. upsized its six-year first-lien term loan to $320 million from $295 million and downsized its seven-year second-lien term loan to $140 million from $165 million, according to a market source.

Pricing on the first-lien term loan is Libor plus 425 basis points, after flexing from Libor plus 475 bps. There is a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 850 bps with a 1.25% floor and a discount of 98, in line with initial talk. There is call protection of 103 in year one, 102 in year two and 101 in year three.

The first-lien term loan broke for trading on Tuesday at par ¼ bid, par ¾ offered and then moved up to par ½ bid, 101 offered, and the second-lien loan broke at 99 bid, 99 ¼ offered, and then moved up to 99¼ bid, 99¾ offered, the source added.

The $510 million credit facility also includes a $50 million five-year revolver.

RBC Capital Markets LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Transtar is a Cleveland-based distributor of automotive aftermarket driveline services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.