Siemens Audiology, Douglas Dynamics free to trade; Siemens dollar tranche above OID

By Sara Rosenberg

New York, Dec. 12 – Siemens Audiology Systems’ (Auris Luxembourg III Sarl) term loan B emerged in the secondary market on Friday, with the U.S. dollar tranche seen trading above its original issue discount, and Douglas Dynamics Inc. broke as well.

Siemens Audiology’s new bank debt freed up for trading on Friday with the $600 million seven-year covenant-light term loan B-2 quoted at 99 3/8 bid, 99 7/8 offered, according to a market source.

Pricing on the U.S. dollar term loan is Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99. There is 101 soft call protection for six months.

The company is also getting a €305 million seven-year covenant-light term loan B-1 that is priced at Euribor plus 450 bps with a 1% floor and was issued at a discount of 99¾. This debt has 101 soft call protection for six months as well.

During syndication, the total amount of term debt was upsized from €745 million-equivalent, pricing on the U.S. dollar and euro tranches firmed at the tight end of the Libor/Euribor plus 450 bps to 475 bps talk, the discount on the euro price was tightened from 99 and the MFN sunset provision was eliminated.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and UBS AG are the physical bookrunners on Siemens Audiology’s term loan B debt (B1/B+), with UniCredit a joint bookrunner.

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