Tecta flexes $375 million first-lien term loan to Libor plus 450 bps

By Sara Rosenberg

New York, Nov. 27 – Tecta America Corp. increased pricing on its $375 million seven-year covenant-light first-lien term loan to Libor plus 450 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

In addition, the original issue discount on the first-lien term loan was revised to 99 from 99.5 and the 101 soft call protection was extended to one year from six months, the source said.

The first-lien term loan still has a 0% Libor floor.

Tecta also eliminated plans for a $100 million eight-year covenant-light second-lien term loan that was talked at Libor plus 800 bps to 825 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s now $435 million of credit facilities, down from $535 million, include a $60 million revolver as well.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and RBC Capital Markets are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Dec. 10.

Proceeds will be used to help fund the buyout of the company by Altas Partners from ONCAP.

More equity is being used for the transaction to compensate for the eliminated second-lien term loan, the source added.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Tecta is a Rosemont, Ill.-based provider of critical commercial roofing services.

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