Aclara launches $345 million term loan B at Libor plus 550-575 bps

By Sara Rosenberg

New York, Aug. 3 – Aclara Technologies LLC (Meter Readings Holding LLC) launched on Wednesday its $345 million seven-year first-lien term loan B (B3/B) with price talk of Libor plus 550 basis points to 575 bps with a 1% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

The term loan has 101 soft call protection for one year, amortization of 1% per annum and a first-lien net leverage covenant of 5.75 times with step-downs, the source said.

Also, the loan has an excess cash flow sweep of 75% with step-downs and an incremental allowance of $50 million plus an unlimited amount up to 4 times leverage.

Morgan Stanley Senior Funding Inc. and Stephens Inc. are the joint lead arrangers and bookrunners on the deal.

Commitments are due on Aug. 16, the source added.

Proceeds will be used to refinance existing debt and fund a sponsor dividend.

Aclara is a Hazelwood, Mo.-based supplier of smart infrastructure solutions to water, gas and electric utilities.

© 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.