Phinia cuts term loan B to $425 million, flexes to SOFR plus 400 bps

By Sara Rosenberg

New York, June 8 – Phinia Inc. downsized its term loan B to $425 million from $500 million and increased pricing to SOFR plus 400 basis points from SOFR plus 375 bps, according to a market source.

In addition, the original issue discount on the term loan B was revised to 96 from talk in the range of 98.5 to 99 and the maturity was shortened to five years from seven years, the source said.

The term loan B still has 10 bps CSA, a 0.5% floor, 101 soft call protection for six months and a ticking fee of the full margin plus SOFR starting on June 19.

JPMorgan Chase Bank, BofA Securities Inc., PNC Bank, US Bank and Wells Fargo Securities LLC are the joint bookrunners on the deal. BofA is the administrative agent.

Proceeds will be used to help fund the spinoff of BorgWarner Inc.’s fuel systems and aftermarket segments into a separate, publicly traded company named Phinia.

Closing is expected this year, subject to customary conditions.

Phinia is an Auburn Hills, Mich.-based provider of fuel systems, starters and alternators to the commercial vehicle, light vehicle, and aftermarket end markets.

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