Flow Control sets talk on $735 million of term loans with launch

By Sara Rosenberg

New York, March 3 – Flow Control Group (Flow Merger Sub Inc.) released price talk on its $735 million of term loans in connection with its lender call on Wednesday, according to a market source.

The $625 million seven-year covenant-lite first-lien term loan, which includes a $100 million delayed-draw tranche, is talked at Libor plus 375 basis points to 400 bps with a 0.5% Libor floor and an original issue discount of 99.5, the source said.

The delayed-draw term loan has a ticking fee of 0.75% starting on day 61.

Talk on the $110 million eight-year covenant-lite second-lien term loan is Libor plus 700 bps to 725 bps with a 0.5% Libor floor and a discount of 99.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and KKR Capital Markets are the lead arrangers on the deal, with Credit Suisse the left lead on the first-lien loan and UBS the left lead on the second-lien loan.

Commitments are due at 5 p.m. ET on March 16.

Proceeds will be used to help fund the buyout of the company by KKR from Bertram Capital and to finance deals under letters of intent.

Flow Control is a Charlotte, N.C.-based distributor and technical adviser for mission critical flow control and industrial automation products and related services.

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