Douglas Dynamics launches $130 million incremental term loan at 99 OID

By Sara Rosenberg

New York, June 28 – Douglas Dynamics Inc. launched to investors its fungible $130 million incremental term loan (B2) with original issue discount talk of 99, according to a market source.

Pricing on the incremental loan is Libor plus 425 basis points with a 1% Libor floor, in line with existing term loan pricing.

All of the term loan debt will get 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Commitments are due on July 8, the source added.

Proceeds will be used to help fund the acquisition of Dejana Truck and Utility Equipment for $206 million.

Other funds for the acquisition will come from an ABL revolver draw and cash on hand.

Closing is expected in the third quarter, subject to customary regulatory approvals and other conditions.

Douglas Dynamics is a Milwaukee-based manufacturer of vehicle attachments and equipment. Dejana is a Kings Park, N.Y.-based truck equipment company.

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