Madison IAQ talks $1.93 billion term loan at Libor plus 350-375 bps

By Sara Rosenberg

New York, June 3 – Madison IAQ launched on Thursday its $1.925 billion seven-year first-lien term loan (B1/B) with price talk of Libor plus 350 basis points to 375 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., CIBC, Barclays, BofA Securities Inc., HSBC Securities (USA) Inc., MUFG, Capital One, Golub and Stifel are the lead arrangers on the deal.

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

Proceeds will be used with $600 million of other secured debt, $885 million of unsecured debt and equity from Madison Industries to fund the acquisition of Nortek Air from Melrose Industries plc and refinance Madison IAQ’s existing debt.

Closing is expected this summer.

Madison IAQ is a provider of indoor air quality solutions. Nortek Air is a provider of critical air management, thermal and HVAC solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.