Direct ChassisLink shops $850 million loan at Libor plus 725-750 bps

By Sara Rosenberg

New York, March 26 – Direct ChassisLink Inc. (Drive Chassis Holdco LLC) launched at its bank meeting on Tuesday an $850 million seven-year covenant-lite term loan (Caa1/B+) with price talk of Libor plus 725 basis points to 750 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has hard call protection of 102 in year one and 101 in year two, and no amortization, the source said.

Mandatory prepayments are from 100% of non-permitted debt issuance proceeds, and from 100% of the net cash proceeds from non-ordinary course asset sales in excess of an amount set forth in the term facility documentation, and any amounts utilized to repay the ABL facility, stepping down to 50% and 0% at 0.5 times and 1 times inside closing date secured net leverage, respectively, subject to customary reinvestment rights.

Security is a perfected second priority lien on all equity interests of the lead borrower directly held by the holding company, and substantially all tangible and intangible assets and capital stock of the borrowers and subsidiary guarantors, limited to 65% of the voting capital stock of first tier foreign subsidiaries, subject to other customary exceptions, the source continued.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and MUFG are the joint lead arrangers on the deal. Citigroup is the administrative agent.

Commitments are due at 5 p.m. ET on April 4, the source added.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management LLC from EQT Infrastructure, who will retain a 20% minority stake.

Closing is expected in early/mid-April, subject to customary regulatory approvals.

Direct ChassisLink is a Charlotte, N.C.-based provider of domestic and marine chassis to the intermodal supply chain.

© 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.