thyssenkrupp reworks U.S. and euro term loan sizes, tightens OID

By Sara Rosenberg

New York, June 30 – thyssenkrupp Elevator upsized its U.S. seven-year first-lien term loan B (B1/B/B+) to $2.875 billion from a revised amount of $2.815 billion and an initial size of roughly €2.05 billion equivalent, according to a market source.

Also, the company upsized its euro seven-year first-lien term loan B (B1/B/B+) to €1.015 billion from €1 billion, the source said.

In addition, the original issue discount talk on the U.S. and euro term loans was revised to a range of 97.5 to 98 from a range of 96 to 97, and then firmed at 98, the tight end of the revised talk, the source said.

Pricing on the U.S. and euro term loans remained at Libor/Euribor plus 425 basis points with a 0% floor, and the debt still has 101 soft call protection for one year.

Upon the first upsizing to the U.S. term loan, which was announced on Monday, the company eliminated plans for a €500 million term loan A.

Goldman Sachs Bank USA, UBS Investment Bank, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are the leads on the deal, with Goldman the left lead on the U.S. loan and UBS the left lead on the euro loan.

Proceeds will be used to help fund the buyout of the company by Advent International, Cinven and RAG-Stiftung.

Other funds for the transaction will come from $1.56 billion of senior secured notes, which were upsized from an initial size of $1.4 billion, $445 million of senior notes, which were upsized from about $440 million, €1.1 billion of senior secured notes, which were upsized from an initial amount of €750 million, €500 million of floating-rate notes, which were previously downsized by €500 million, and €650 million of senior notes.

Closing is expected by the end of the third quarter, subject to customary closing conditions and regulatory approvals.

thyssenkrupp Elevator is a Germany-based provider of elevator technology.

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