Tecomet to launch $610 million credit facility on Monday afternoon

By Sara Rosenberg

New York, March 30 – Tecomet (TecoStar Holdings Inc.) is scheduled to hold a bank meeting at 2:30 p.m. ET on Monday to launch a $610 million credit facility, according to a market source.

Jefferies Finance LLC is the left lead arranger on the deal.

The facility consists of a $70 million ABL revolver and a $540 million seven-year first-lien term loan, the source said.

The term loan has 101 soft call protection for six months.

Proceeds will be used to help fund the buyout of the company by Charlesbank Capital Partners.

Other funds for the transaction will come from a privately placed second-lien term loan, the source added.

First-lien leverage is 4.5 times, and total leverage is 6.4 times.

Tecomet is a Wilmington, Mass.-based provider of high precision manufacturing solutions serving global medical device and aerospace and defense original equipment manufacturers.

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