Therma lifts funded term loan to $390 million, updates pricing

By Sara Rosenberg

New York, Dec. 11 – Therma Holdings LLC (Refficiency Holdings LLC) upsized its funded seven-year first-lien term loan to $390 million from $370 million, according to a market source.

Also, pricing on the funded term loan and on the $75 million delayed-draw first-lien term loan firmed at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and the original issue discount was tightened to 99 from 98.5, the source said. The discount on the delayed-draw term loan will be paid when drawn.

The term loan debt still has two 25 bps step-downs at consolidated first-lien net leverage ratio levels of 4.75x and 4.25x and a 25 bps step-down following the consummation of a qualified initial public offering, a 0.75% Libor floor and 101 soft call protection for six months.

The delayed-draw term loan is available for 24 months and has a ticking fee of half the spread from days 46 to 90 and the full spread thereafter.

The company’s now $530 million of credit facilities (B2/B-), up from $510 million, also include a $65 million five-year revolver.

Jefferies LLC, Blackstone, Societe Generale, BMO Capital Markets Corp. and MUFG are the bookrunners on the deal.

Proceeds will be used to fund the buyout of the company by the Blackstone Group LP from Gemspring Capital and fund cash to the balance sheet for general corporate purposes.

Blackstone is also buying energy and sustainability consulting firm RE Tech Advisors, Inc., which will be integrated into Therma.

Closing is expected this quarter, subject to regulatory approvals and customary conditions.

Therma Holdings is a San Jose, Calif.-based specialty mechanical, electrical and controls services company focused on designing, building and servicing complex systems in mission-critical facilities.

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