Duravant talks $175 million second-lien loan at Libor plus 725 bps

By Sara Rosenberg

New York, April 22 – Duravant LLC (Engineered Machinery Holdings Inc.) launched on Thursday its $175 million eight-year incremental second-lien term loan with price talk of Libor plus 725 basis points with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The incremental second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at noon ET on May 5.

The company is also getting a $570 million equivalent euro seven-year incremental first-lien term loan and a $235 million five-year revolving credit facility.

Price talk on the euro first-lien term loan is Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5, the source added.

Jefferies LLC, Credit Suisse, Societe Generale, Citigroup Global Markets Inc., KeyBanc Capital Markets, MUFG and Antares Capital are the arrangers on the deal, with Jefferies the left lead on the second-lien term loan and Credit Suisse listed left on the first-lien term loan. Jefferies is the agent.

Proceeds will be used to fund the acquisition of Foodmate, a manufacturer of poultry processing equipment dual-headquartered in Numansdorp, the Netherlands, and Ball Ground, Ga., for working capital, to add cash to the balance sheet and for other general corporate purposes.

Duravant is a Downers Grove, Ill.-based engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.