Douglas Dynamics modifies OID on $130 million term loan to 99.5

By Sara Rosenberg

New York, July 8 – Douglas Dynamics Inc. revised the original issue discount on its fungible $130 million incremental term loan (B2) to 99.5 from 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, and all of the term loan debt is still getting 101 soft call protection for six months.

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

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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