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Pro Mach lifts loan sizes, reduces pricing to Libor plus 375 bps
By Sara Rosenberg
New York, Oct. 9 - Pro Mach Inc. upsized its add-on term loan B due July 16, 2017 to $30 million from $25 million and its revolver to $55 million from $50 million at launch, according to a market source.
Also, pricing on the add-on term loan B, the revolver, which prior to this deal was sized at $35 million, and about $215 million of existing term loan B debt due July 16, 2017 was set at Libor plus 375 basis points, down from initial talk of Libor plus 400 bps to 425 bps, the source said.
Furthermore, the original issue discount on new money term loan B is 991/4, the midpoint of prior talk of 99 to 991/2, the source continued.
As before, all of the term loan B debt has a 1.25% Libor floor and 101 soft call protection for one year, and the pricing grid is being removed from the revolver.
Proceeds will be used to reprice the existing term loan B from Libor plus 475 bps with a 1.5% Libor floor and for acquisitions.
With this transaction, the company is asking to amend its credit facility to change baskets and covenant levels.
Lenders are being offered a 15 bps consent fee.
Barclays is the arranger on the roughly $300 million senior secured credit facility (B2/B+), up from $290 million.
Recommitments were due at 5 p.m. ET on Tuesday, and closing is expected by the end of this week, the source added.
Senior secured leverage is 3.8 times, gross leverage is 3.8 times and net total leverage is 3.4 times.
Pro Mach is a Loveland, Ohio-based provider of packaging machinery services and related aftermarket products to clients in the food, beverage, household goods and pharmaceutical industries.
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