Therm-O-Disc launches $355 million term loan at SOFR plus 500-525 bps

By Sara Rosenberg

New York, May 3 – Therm-O-Disc Inc. (Token Buyer Inc.) launched on Tuesday its $355 million seven-year senior secured covenant-lite first-lien term loan B (B2/B-) with price talk of SOFR plus 500 basis points to 525 bps with 0 bps CSA, a 0.5% floor and an original issue discount of 97.5 to 98, according to a market source.

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

The company’s $520 million of credit facilities also include a $65 million revolver (B2/B-) and a $100 million second-lien term loan (Caa2/CCC+).

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Jefferies LLC are the bookrunner on the deal. Morgan Stanley is the administrative agent.

Commitments are due at noon ET on May 17, the source added.

Proceeds will be used with cash on hand to fund the buyout of the company by One Rock Capital Partners LLC from Emerson and to pay related fees and expenses.

Closing is expected in the first half of this year, subject to applicable regulatory approvals and customary conditions.

Therm-O-Disc is a Mansfield, Ohio-based designer and manufacturer of safety-critical sensors, thermal cutoffs and sealed connecting components primarily used in heating, ventilation and air conditioning, appliance, water heater, industrial, aerospace & defense, and transportation applications.

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