Phinia readies launch of $500 million term loan B for Tuesday

By Sara Rosenberg

New York, May 22 – Phinia Inc. is scheduled to hold a lender call at 10:30 a.m. ET on Tuesday to launch a $500 million seven-year term loan B (BB+), according to a market source.

JPMorgan Chase Bank, BofA Securities Inc., PNC Bank, US Bank and Wells Fargo Securities LLC are the leads on the deal.

Price talk on the term loan B is SOFR+10 basis points CSA plus 375 bps with a 0.5% floor and an original issue discount of 98.5 to 99, the source said.

The term loan has 101 soft call protection for six months and a ticking fee of the full margin plus SOFR starting on June 19.

Commitments are due at noon ET on June 1, the source added.

Proceeds will be used to help fund the spinoff of BorgWarner Inc.’s fuel systems and aftermarket segments into a separate, publicly traded company named Phinia.

Along with the term loan B, the company is expected to get a $500 million revolving credit facility and a $300 million term loan A.

Funds from the term loans will be used to repay historical debt to BorgWarner.

Closing is expected this year, subject to customary conditions.

Phinia is an Auburn Hills, Mich.-based provider of fuel systems, starters and alternators to the commercial vehicle, light vehicle, and aftermarket end markets.

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