Davis-Standard to launch $450 million term loan B on Wednesday

By Sara Rosenberg

New York, Nov. 28 – Davis-Standard LLC (DS Parent Inc.) is scheduled to hold a lender call at 11 a.m. ET on Wednesday to launch a $450 million seven-year covenant-lite term loan B, according to a market source.

Wells Fargo Securities LLC is the left lead arranger on the deal. The debt commitment was provided by Wells Fargo, BMO Capital Markets Corp., UBS Securities LLC, Deutsche Bank Securities Inc., Stifel, Nicolaus & Co. Inc. and Citizens Bank.

Price talk on the term loan is SOFR plus 525 basis points to 550 bps with a 0.75% floor and an original issue discount of 97 to 98, the source said.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Security is a perfected first-lien interest in substantially all of the borrower’s and the guarantors’ assets, subject to customary exceptions.

Commitments are due at noon ET on Dec. 13, the source added.

Proceeds will be used to fund the acquisition of the Extrusion Technology Group from Nimbus and refinance existing debt.

Davis-Standard, owned by Gamut Capital Management LP, is a Pawcatuck, Conn.-based developer, distributor and aftermarket servicer of extrusion and converting technology. Extrusion Technology is a provider of extrusion equipment and services.

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