Flow Control talks $250 million of term loans at Libor plus 600 bps

By Sara Rosenberg

New York, April 16 – Flow Control (FR Flow Control Luxco 1 Sarl) launched on Tuesday its $180 million term loan B (B3) and $70 million cash collateralized term loan C (Ba3) with price talk of Libor plus 600 basis points with a 1% Libor floor and an original issue discount of 98, according to a market source.

The term loan debt has 101 soft call protection for six months and a secured net leverage covenant, the source said.

The term loan B and term loan C are being sold as a strip.

Also included in the company’s $290 million of credit facilities is a $40 million revolver (B3).

BNP Paribas Securities Corp. and Natixis are the leads on the deal.

Commitments are due on May 1, the source added.

Proceeds will be used to help fund the buyout of the company by First Reserve from the Weir Group plc for an enterprise value of £275 million, payable in cash and subject to customary working capital and debt-like adjustments at closing.

Closing is expected this quarter, depending on antitrust approvals and other customary conditions.

Flow Control is a designer, manufacturer and aftermarket services provider of engineered valves and pumps used in energy and broader industrial applications.

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