Tecta America launches $200 million term loan at SOFR plus 450 bps

By Sara Rosenberg

New York, Aug. 14 – Tecta America Corp. was scheduled to hold a lender call at 2 p.m. ET on Monday to launch a non-fungible $200 million incremental covenant-lite term loan B due April 10, 2028 that is talked at SOFR+CSA plus 450 basis points with a 0.75% floor and an original issue discount of 98, according to a market source.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The incremental term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Security is a first priority interest in substantially all assets.

Wells Fargo Securities LLC and RBC Capital Markets LLC are the lead arrangers on the deal.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used to repay an existing second-lien term loan, to pre-fund acquisitions under letters of intent and to pay related fees and expenses.

The incremental term loan is coterminous with the company’s existing $603 million term loan B.

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

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