WireCo launches $325 million term loan B at Libor plus 500 bps area

By Sara Rosenberg

New York, June 14 - WireCo WorldGroup Inc. launched its $325 million term loan B on Thursday with price talk in the Libor plus 500 basis points context with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source.

The loan has 101 soft call protection for one year, the source said.

Amortization is 1% per annum.

The company's $460 million senior secured credit facility (Ba2/BB-) due Feb. 15, 2017 also includes a $135 million revolver that has a 50 bps unused fee.

Covenants include net total leverage and interest coverage ratios.

There is a 50% excess cash flow sweep with step-downs to 25% and 0% based on leverage.

Commitments are due on June 27, the source added.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Koninklijke (Royal) Lankhorst Euronete Group BV for $231.2 million and to refinance an existing senior secured credit facility.

Other funds for the transaction will come from $82.5 million of privately placed 11¾% senior unsecured notes due May 15, 2017.

Pro forma for the acquisition, total leverage will be 5.4 times and net leverage will be 5.1 times, based on pro forma adjusted EBITDA of $164.3 million for the 12-month period ended March 31.

WireCo is a Kansas City, Mo.-based manufacturer, engineer and distributor of wire, wire rope, wire rope assemblies and electromechanical cable. Koninklijke is a Netherlands-based manufacturer of ropes, industrial yarns, netting, yachting products and recycled plastic products.

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