Therm-O-Disc increases first- and second-lien term loan sizes

By Sara Rosenberg

New York, May 26 – Therm-O-Disc Inc. (Token Buyer Inc.) upsized its seven-year senior secured covenant-lite first-lien term loan B to $360 million from $355 million and its privately placed second-lien term loan to $110 million from $100 million, according to a market source.

Pricing on the first-lien term loan is SOFR+CSA plus 600 basis points with a 0.5% floor and an original issue discount of 92.

The first-lien term loan has CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for one year.

Previously in syndication, pricing on the first-lien term loan was increased from talk in the range of SOFR plus 500 bps to 525 bps, the CSA was revised from 0 bps, the discount widened from talk in the range of 97.5 to 98, the call protection was extended from six months, and leverage-based and initial public offering-based pricing step-downs were removed.

The company’s now $535 million of credit facilities, up from $520 million, also include a $65 million revolver.

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

Proceeds will be used with cash on hand to fund the buyout of the company by One Rock Capital Partners LLC from Emerson, to pay related fees and expenses, and, due to the upsizings, for general corporate purposes, including funding the increased original issue discount.

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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