Davis-Standard firms $450 million term loan B at SOFR plus 550 bps

By Sara Rosenberg

New York, Dec. 14 – Davis-Standard LLC (DS Parent Inc.) set pricing on its $450 million seven-year covenant-lite term loan B at SOFR plus 550 basis points, the high end of the SOFR plus 525 bps to 550 bps talk and removed a 25 bps step-down at less than 3.25x first-lien net leverage, according to a market source.

Also, the original issue discount talk on the term loan was changed to a range of 95 to 96 from a range of 97 to 98, the source said.

The term loan still has a 0.75% floor and 101 soft call protection for six months.

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.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to fund the acquisition of the Extrusion Technology Group from Nimbus and to 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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