Tecta America discloses talk on first- and second-lien term loans

By Sara Rosenberg

New York, March 23 – Tecta America Corp. released price talk on its $600 million seven-year covenant-lite first-lien term loan (B1/B-) and $190 million eight-year covenant-lite second-lien term loan (Caa1/CCC) in connection with its lender call on Tuesday, according to a market source.

Talk on the first-lien term loan is Libor plus 425 basis points to 450 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 0.75% Libor floor and a discount of 98.5, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $915 million of credit facilities also include a $125 million revolver (B1/B-).

Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Truist are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on April 1.

Proceeds will be used to refinance existing debt, to finance an acquisition, to fund a distribution and for general corporate purposes.

Tecta is a Rosemont, Ill.-based provider of commercial roofing services.

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