Colfax readies launch of $1.83 billion credit facility for Feb. 7

By Sara Rosenberg

New York, Jan. 31 - Colfax Corp. has set a lender call for Feb. 7 to launch about $1.83 billion in bank debt that will be used to refinance/reprice existing loans, according to a market source.

Deutsche Bank Securities Inc. is the lead bank on the deal.

The debt consists of a $500 million revolver, which is being upsized from a current amount of $300 million, a $333 million term loan A-1, which includes a $150 million add-on, a $456 million term loan A-2 and a $541 million term loan B, which is a roughly $350 million reduction from the current term loan B size, the source said.

The revolver, term loan A-1 due January 2017 and term loan A-2 due January 2017 are talked at Libor plus 250 basis points, versus current term loan A pricing of Libor plus 300 bps.

Term loan A lenders are being offered 25 bps to roll their commitments, and new lenders are being offered a 37.5 bps upfront fee.

Price talk on the term loan B due January 2019 is Libor plus 250 bps to 275 bps, with a 0.75% Libor floor and a par offer price, down from existing term loan B pricing of Libor plus 350 bps with a 1% Libor floor, the source added.

The term loan B has 101 soft call protection for six months.

Commitments are due on Feb. 11.

Colfax is a Fulton, Md.-based designer, manufacturer and marketer of fluid handling products to commercial marine, oil and gas, power generation, defense and general industrial sectors.

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