Tube City first-lien add-on details surface, adding pricing grids to first-, second-lien debt

By Sara Rosenberg

New York, Sept. 30 - Details on Tube City IMS Ltd.'s first-lien term loan add-on surfaced Friday as the company held a conference call for existing lenders to launch the proposal, according to a market source.

The company is looking to layer on $65 million of first-lien term loan debt that will be used to pay a dividend to sponsors, the source said.

At the same time, a pricing grid will be added to the company's first- and second-lien term loans, under which pricing on the first lien can go up to Libor plus 275 basis points from Libor plus 250 bps when leverage is north of 31/2x, and pricing on the second lien can go up to Libor plus 600 bps from Libor plus 575 bps when leverage is north of 31/2x, the source said.

With the add-on, leverage will move to more than 31/2x, putting the higher rates in effect, the source explained.

Bear Stearns is the lead bank on the deal.

Tube City is a Glassport, Pa., provider of raw materials and services to the steel industry.

© 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.