Flow Control to launch $735 million of term loans on Wednesday

By Sara Rosenberg

New York, March 2 – Flow Control Group (Flow Merger Sub Inc.) will hold a lender call at 11 a.m. ET on Wednesday to launch $735 million of term loans, according to a market source.

The debt consists of a $625 million seven-year covenant-lite first-lien term loan, including a $100 million delayed-draw tranche, and a $110 million eight-year covenant-lite second-lien term loan, the source said.

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.

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.

The delayed-draw term loan has a ticking fee of 0.75% after 61 days.

Commitments are due at 5 p.m. ET on March 16, the source added.

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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