Husky Injection talks five-year secured notes to yield 9¼%-9½%; final size to be determined

By Paul A. Harris

Portland, Ore., Jan. 30 – Husky Injection Molding Systems Ltd. and Titan Co Borrower, LLC set price talk for a to-be-determined amount of senior secured notes due 2029 (B3/B-) at 9¼% to 9½%, according to market sources.

The company announced an upsize to its first-lien debt, encompassing the notes offering and a concurrent five-year covenant-lite term loan B, by $150 million and a reduction of its new preferred equity by $150 million.

As a result of the $150 million upsizing, the loan size, which was originally $1.3 billion, is now to be determined, and the secured notes size, which was originally $1.3 billion, is now also to be determined.

The Rule 144A and Regulation S for life five-year notes become subject to an initial call after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes also feature a 40% equity clawback at par plus full coupon during the non-call period and have a 101% poison put.

BofA Securities, Deutsche Bank, Barclays, BMO, Goldman Sachs, NBC and TD are the joint bookrunners.

Proceeds from the notes, loan and preferred equity will be used to redeem all outstanding senior notes due 2026 and all outstanding senior PIK notes due 2025 and to repay outstanding borrowings credit facilities.

The prospective issuer is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

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