TK Elevator lifts U.S. term loan to $3.49 billion, updates pricing

By Sara Rosenberg

New York, March 11 – TK Elevator upsized its U.S. term loan B due April 2030 to $3.49 billion from $2.941 billion and set pricing at SOFR plus 350 basis points, the low end of the SOFR plus 350 bps to 375 bps talk, according to a market source.

Also, the original issue discount on the U.S. term loan and on the company’s €500 million term loan B due April 2030 was tightened to 99.75 from 99.5, the source said.

The U.S. term loan still has a 0.5% floor and amortization of 1% per annum, the euro term loan still has pricing of Euribor plus 400 bps with a 0% floor, and both loans (B2/B/B+) still have 101 soft call protection for six months.

Goldman Sachs, Barclays, Credit Agricole, Deutsche Bank Securities Inc. and UBS Investment Bank are the bookrunners on the deal, with Goldman the sole physical bookrunner on the U.S. loan. BofA Securities Inc., Commerzbank, Hessische Landesbank, HSBC, Intesa Sanpaolo, KKR Capital Markets, MUFG, RBC Capital Markets, SMBC, Societe Generale, Standard Chartered, TD Securities and Unicredit are passive bookrunners. Barclays is the agent.

Proceeds will be used to extend an existing $2.841 billion term loan B due 2027, refinance existing $600 million and €45 million private senior notes due 2028, and, due to the upsizing, to repay existing €500 million floating-rate notes due 2027.

Advent and Cinven are the sponsors.

TK Elevator is a provider of elevators and escalators.

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