Douglas Dynamics talks $190 million term B at Libor plus 450-475 bps

By Sara Rosenberg

New York, Dec. 1 – Douglas Dynamics Inc. launched on Monday its $190 million seven-year term loan B with price talk of Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

The company’s $290 million credit facility also includes a $100 million five-year revolver.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds, along with cash on hand, will be used to fund the acquisition of Henderson for $95 million, subject to working capital, cash and other adjustments, to refinance existing debt and for general corporate purposes.

Closing is expected by year-end, subject to customary regulatory approvals and conditions.

Douglas Dynamics is a Milwaukee-based manufacturer of vehicle attachments and equipment. Henderson is a Manchester, Iowa-based manufacturer of customized, turnkey snow and ice control solutions for heavy-duty trucks.

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