Tecta America updates first- and second-lien term loan sizes, pricing

By Sara Rosenberg

New York, April 5 – Tecta America Corp. upsized its seven-year covenant-lite first-lien term loan to $615 million from $600 million and downsized its eight-year covenant-lite second-lien term loan to $170 million from $190 million, according to a market source.

Also, pricing on the first-lien term loan firmed at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and a 25 bps step-down was added after 0.5x total net leverage deleveraging, the source said.

In addition, pricing on the second-lien term loan was increased to Libor plus 850 bps from talk in the range of Libor plus 800 bps to 825 bps.

The first-lien term loan still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan still has a 0.75% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

The company’s now $910 million of credit facilities, down from $915 million, also include a $125 million revolver.

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

Recommitments are due at noon ET on Tuesday, the source added.

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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