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TK Elevator confirms pricing step-downs on U.S. and euro term loans
By Sara Rosenberg
New York, June 28 – TK Elevator confirmed a 25 bps pricing step-down at 4.42x senior secured net leverage on its repriced roughly $2.861 billion senior secured term loan B due July 2027, according to a market source.
The company also confirmed that its repriced €1.015 billion senior secured term loan B due July 2027 has a 25 bps pricing step-down at 4.42x senior secured net leverage and a 25 bps step-down at 3.92x senior secured net leverage, the source said.
The U.S. and euro term loans have a six-month margin ratchet holiday.
The margin ratchets on the repriced loans are the same concept and thresholds as under the existing U.S. and euro term loans.
Price talk on the U.S. term loan remained at Libor plus 350 basis points to 375 bps with a 0.5% Libor floor and an original issue discount of 99.75 to par, and price talk on the euro term loan is still Euribor plus 375 bps with a 0% floor and a discount of 99.75 to par.
The company is also in market with a new €200 million equivalent add-on term loan.
All of the term loan debt (B1/B+/B+) will have 101 soft call protection for six months, and the U.S. term loan will have amortization of 1% per annum.
Goldman Sachs is the physical bookrunner on the deal. Deutsche Bank is a bookrunner.
Commitments and consents are due at 10 a.m. ET on Tuesday.
Proceeds from the add-on term loan will be used to partially repay existing senior notes, and the repricing will revise pricing on the existing U.S. and euro term loans from Libor/Euribor plus 425 bps with a 0% floor.
TK Elevator is an international provider of elevator technology.
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