Transtar Holding to launch $510 million credit facility on Wednesday

By Sara Rosenberg

New York, Sept. 13 - Transtar Holding Co. is set to hold a bank meting on Wednesday to launch a $510 million credit facility, according to a market source.

RBC Capital Markets LLC is the lead bank on the deal.

The facility consists of a $50 million five-year revolver, a $295 million six-year first-lien term loan and a $165 million seven-year second-lien term loan, the source said.

Price talk on the first-lien term loan is Libor plus 475 basis points with a 1.25% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 850 bps with a 1.25% floor and a discount of 98, the source continued.

Proceeds will be used to refinance existing debt and fund a dividend.

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

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