RelaDyne lifts term loan to $565 million, flexes to SOFR plus 425 bps

By Sara Rosenberg

New York, Jan. 26 – RelaDyne Inc. upsized its seven-year first-lien term loan to $565 million from $540 million and reduced pricing to SOFR plus 425 basis points from SOFR plus 450 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was changed to 99.5 from 99 and there is now 0 bps CSA versus no CSA at launch, the source said.

The first-lien term loan still has a 0.5% floor and 101 soft call protection for six months.

Recommitments were scheduled to be due at noon ET on Wednesday, the source added.

The company’s now $880 million of credit facilities, up from $855 million, also include a $150 million ABL revolver and a $165 million privately placed eight-year second-lien term loan.

RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and Golub Capital are the arrangers on the deal.

Proceeds will be used to support the recently completed buyout of the company by American Industrial Partners from Audax Private Equity, and refinance an existing roughly $450 million first-lien term loan and a roughly $140 million second-lien term loan.

The funds from the first-lien term loan upsizing will reduce the equity component.

RelaDyne is a Cincinnati-based provider of lubricants and distributor of less-than-truckload fuel, diesel exhaust fluid, chemicals and other related products.

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