Sensata expects to reduce extended term loan B amount to $472 million

By Sara Rosenberg

New York, Sept. 10 – Sensata Technologies Inc. plans to downsize its seven-year covenant-lite senior secured term loan B to $472 million from roughly $913 million, according to a market source.

The term loan is talked at Libor plus 175 basis points with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, BofA Securities, Inc., Mizuho Bank and RBC Capital Markets are the leads on the deal.

Commitments and consents are due at noon ET on Sept. 17.

Proceeds will be used to amend and extend an existing term loan B due Oct. 14, 2021, which is currently priced at Libor plus 175 bps with a 0% Libor floor. The existing term loan B is expected to be paid down from about $913 million with proceeds from a $450 million senior note offering that was announced on Tuesday.

Along with the extension, the credit agreement amendment would increase the incremental, and change some operational and restrictive covenants to provide greater flexibility and permissions.

Sensata is a producer of sensors and controls for manufacturers in the automotive, appliance, aircraft, industrial and HVAC markets.

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