A-Gas launches $520 million term loan B at SOFR plus 500 bps

By Sara Rosenberg

New York, Oct. 25 – A-Gas FinCo Inc. launched on its lender call on Wednesday a $520 million seven-year senior secured covenant-lite term loan B (B2) that is talked at SOFR plus 500 basis points with 25 bps step-downs at 0.5x and 1x inside opening senior secured net leverage, a 0% floor and an original issue discount of 96 to 97, according to a market source.

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

Security is parent third party security over its shares in and intercompany loans to the borrower, borrower bank accounts and shares in target and shares pledges over material subsidiaries in non-excluded jurisdictions.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Guggenheim and Truist Securities are the joint arrangers on the deal. Truist is the administrative agent.

Commitments are due at noon ET on Nov. 8, the source added.

Proceeds will be used to help fund the acquisition of a majority stake in the company by TPG from KKR. KKR will remain a significant minority shareholder in the business.

Closing is expected by the end of the year, subject to customary conditions, including certain regulatory approvals.

A-Gas is a U.K.-based supplier and lifecycle manager of refrigerant and industrial gases, fire suppressants and blowing agents.

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