Sensata tightens issue price on amended and extended term loan to par

By Sara Rosenberg

New York, Sept. 17 – Sensata Technologies Inc. revised the issue price on its amended and extended seven-year covenant-lite senior secured term loan B to par from talk in the range of 99.5 to 99.75, according to a market source.

Pricing on the term loan remained at Libor plus 175 basis points with a 0% Libor floor, and the debt still has 101 soft call protection for six months.

Currently the term loan B is sized at roughly $913 million but it is expected to be paid down to $472 million with proceeds from a recently priced $450 million senior notes offering.

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.

Recommitments were scheduled to be due at 5 p.m. ET on Tuesday, the source added.

Allocations are expected on Wednesday.

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.

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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