Horizon Global firms $152 million add-on term loan B at 99.5 OID

By Sara Rosenberg

New York, Sept. 16 – Horizon Global Corp. finalized the original issue discount on its $152 million add-on term loan B at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Pricing on the add-on term loan B is Libor plus 600 basis points with a 1% Libor floor.

J.P. Morgan Securities LLC is the lead arranger on the debt.

Proceeds will be used to help fund the acquisition of Westfalia Group from an investor consortium led by DPE Deutsche Private Equity, which will become a shareholder of Horizon Global as part of the transaction.

The purchase is comprised of about €89 million cash and assumed net debt of €42 million that will be refinanced.

Other funds for the transaction will come from the issuance of €36 million in Horizon Global common stock to the sellers.

Closing is expected in the fourth quarter, subject to the satisfaction of customary conditions.

Horizon Global is a Troy, Mich.-based manufacturer of branded towing and trailering equipment. Westfalia is a Rheda-Wiedenbrück, Germany-based towing company.

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