Therm-O-Disc first-lien term loan B frees to trade atop OID

By Sara Rosenberg

New York, May 27 – Therm-O-Disc Inc. (Token Buyer Inc.) saw its first-lien term loan B surface in the secondary market on Friday after allocating late Thursday, and levels were quoted above its original issue discount.

The $360 million seven-year senior secured covenant-lite first-lien term loan B was quoted at 92˝ bid, 93˝ offered, a trader remarked.

Pricing on the first-lien term loan is SOFR+CSA plus 600 basis points with a 0.5% floor and it was sold at an original issue discount of 92. The debt has CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for one year.

The company’s $535 million of credit facilities also include a $65 million revolver and a $110 million privately placed second-lien term loan.

During syndication, the first-lien term loan was upsized from $355 million, pricing was increased from talk in the range of SOFR plus 500 bps to 525 bps, the CSA was revised from 0 bps, the discount widened from talk in the range of 97.5 to 98, the call protection was extended from six months, and leverage-based and initial public offering-based pricing step-downs were removed. In addition, the second-lien term loan was upsized from $100 million.

Therm-O-Disc leads

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Jefferies LLC are leading Therm-O-Disc’s credit facilities.

Proceeds will be used with cash on hand to fund the buyout of the company by One Rock Capital Partners LLC from Emerson, to pay related fees and expenses, and, due to the recent upsizings, for general corporate purposes, including funding the increased original issue discount.

Closing is expected in early June.

Therm-O-Disc is a Mansfield, Ohio-based designer and manufacturer of safety-critical sensors, thermal cutoffs and sealed connecting components primarily used in heating, ventilation and air conditioning, appliance, water heater, industrial, aerospace & defense, and transportation applications.

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