RelaDyne lifts term loan to $250 million, firms at SOFR plus 500 bps

By Sara Rosenberg

New York, Jan. 13 – RelaDyne Inc. upsized its non-fungible incremental first-lien term loan B due December 2028 to $250 million from $200 million and finalized pricing at SOFR plus 500 basis points, the low end of the SOFR plus 500 bps to 525 bps talk, according to a market source.

Also, the original issue discount on the term loan was revised to 96.5 from 96, the source said.

The term loan still has a 0.5% floor, 101 soft call protection for six months and no CSA.

RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc., Ally, Fifth Third and US Bank are the joint lead arrangers on the deal.

Recommitments were scheduled to be due at 11 a.m. ET on Friday, the source added.

Proceeds will be used to fund the acquisitions of Allied Oil, a distributor of lubricants, diesel exhaust fluid, and industrial services, and Grupo Lucalza, a distributor of lubricants, fuel, and related automotive supplies, and, due to the upsizing, to pay down the remaining ABL facility borrowings and, if any funds are left over, to add cash to the balance sheet.

Currently, RelaDyne has an existing roughly $561 million term loan B due December 2028 priced at SOFR plus 425 bps with a 0.5% floor.

RelaDyne is a Cincinnati-based provider of lubricant and fuel sales & distribution and equipment reliability services to the industrial, commercial, and automotive industries.

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