Bombardier Recreational Products, Therm-O-Disc, Cambrex loan price talk surfaces

By Sara Rosenberg

New York, May 3 – In the primary market on Tuesday, Bombardier Recreational Products Inc. (BRP Inc.), Therm-O-Disc Inc. (Token Buyer Inc.) and Cambrex Corp. all released price talk in connection with their lender calls.

Bombardier Recreational Products held its call in the afternoon and announced talk on its non-fungible $500 million seven-year incremental term loan (Ba2/BB) at SOFR+10 basis points CSA plus 325 bps to 350 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on May 10, the source added.

RBC Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used for general corporate purposes, including to repay outstanding revolver borrowings, to fund an issuer bid to purchase for cancellation up to C$250 million of its subordinate voting shares through a “modified Dutch auction,” and to pay related fees and expenses.

Bombardier is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Therm-O-Disc talk

Therm-O-Disc came out with talk of SOFR plus 500 bps to 525 bps with 0 bps CSA, a 0.5% floor, an original issue discount of 97.5 to 98 and 101 soft call protection for six months on its $355 million seven-year senior secured covenant-lite first-lien term loan B (B2/B-) that launched with a call in the morning, a market source remarked.

Commitments are due at noon ET on May 17, the source added.

The company’s $520 million of credit facilities also include a $65 million revolver (B2/B-) and a $100 million second-lien term loan (Caa2/CCC+).

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Jefferies LLC are leading the deal, which will be used with cash on hand to fund the buyout of the company by One Rock Capital Partners LLC from Emerson and to pay related fees and expenses.

Closing is expected in the first half of this year, subject to regulatory approvals and customary conditions.

Therm-O-Disc is a Mansfield, Ohio-based designer and manufacturer of safety-critical sensors, thermal cutoffs and sealed connecting components.

Cambrex guidance

Cambrex launched on its morning call its fungible $75 million incremental first-lien term loan (B2/B) due December 2026 with original issue discount talk of 99.03, according to a market source.

Pricing on the incremental term loan is SOFR+10 bps CSA plus 350 bps with a 0.75% floor.

Commitments are due at noon ET on Friday, the source added.

RBC Capital Markets is leading the deal that will be used to fund a small acquisition, to repay revolver borrowings and to pay related fees and expenses.

In connection with this transaction, pricing on the company’s existing roughly $917 million first-lien term loan will transition to SOFR+10 bps CSA plus 350 bps with a 0.75% floor from Libor plus 350 bps with a 0.75% Libor floor.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

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