Transtar trims spread on first-lien term loan to Libor plus 450 bps

By Sara Rosenberg

New York, Dec. 15 - Transtar Industries Inc. reduced pricing on its $240 million six-year first-lien term loan (Ba3/BB-) to Libor plus 450 basis points from talk of Libor plus 475 bps to 500 bps and added a step-down to Libor plus 425 bps at less than 4.5 times leverage, according to a market source.

Also, the original issue discount on the first-lien term loan was tightened to 99 from 981/2, and 101 soft call protection for one year was added, the source said.

Meanwhile, pricing on the $135 million seven-year second-lien term loan (B3/B-) was left unchanged at Libor plus 850 bps, but the discount firmed at 981/2, the low end of the 98 to 98½ talk. Call protection is still 103 in year one, 102 in year two and 101 in year three.

And, pricing on the $50 million five-year revolver (Ba3/BB-) firmed at Libor plus 475 bps, the tight end of the Libor plus 475 bps to 500 bps talk, while the discount remained at 981/2, the source added.

As before, all tranches include a 1.75% Libor floor.

Recommitments were due at the end of the day Wednesday and allocations are expected to go out before the end of the week.

RBC and GE Capital are the lead banks on the $425 million credit facility.

Proceeds will be used to help fund the buyout of the company by Friedman Fleischer & Lowe.

Transtar is a Cleveland-based transmission parts provider.

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