Wesco Distribution to launch $820 million of term loans on Wednesday

By Sara Rosenberg

New York, Nov. 5 - Wesco Distribution Inc. is scheduled to hold a lender call at 10 a.m. ET on Wednesday to launch roughly $820 million of term loans, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The debt consists of a $685 million first-lien covenant-light term loan due December 2019 and a C$135 million first-lien covenant-light term loan due December 2019, the source said.

Price talk on the U.S. term loan is Libor plus 300 basis points with a 0.75% Libor floor, and talk on the Canadian term loan is BA plus 350 bps with a 1% floor, the source said.

Both term loans are being offered at par and have 101 soft call protection for six months.

Proceeds will be used to refinance the existing U.S. term loan that is priced at Libor plus 350 bps with a 1% Libor floor and an existing Canadian term loan that is priced at BA plus 400 bps with a 1% floor.

Commitments are due on Nov. 14, the source added.

Wesco is a Pittsburgh-based provider of electrical, industrial and communications MRO and OEM products, construction materials and advanced supply chain management and logistics services.

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