Ilpea Industries flexes $200 million term loan B to Libor plus 550 bps

By Sara Rosenberg

New York, Feb. 17 – Ilpea Industries Inc. increased pricing on its $200 million term loan B to Libor plus 550 basis points from Libor plus 450 bps and widened the original issue discount to 98.5 from 99, according to a market source.

Also, the term loan B now has 101 hard call protection for one year and the maturity was shortened to six years from seven years, the source said.

Furthermore, amortization was sweetened to 2.5% per annum from 1%, the B loan now includes a 75% excess cash flow sweep, and the company agreed to host quarterly calls for investors.

The term loan B still has a 1% Libor floor.

The company’s roughly $250 million equivalent credit facility (B2/B) also includes a $25 million revolver and a €24 million term loan B.

PNC Bank and J.P. Morgan Securities LLC are the lead banks on the deal.

Commitments were scheduled to be due on Friday and allocations are expected end of the week of Feb. 20, the source added.

Proceeds will be used to refinance existing debt and redeem preferred stock.

Closing is targeted for the end of this month.

Ilpea is a Scottsburg, Ind.-based producer of custom plastic extrusions for the appliance and construction industries.

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