A-Gas ups spread on $520 million term loan B to SOFR plus 525 bps

By Sara Rosenberg

New York, Dec. 12 – A-Gas FinCo Inc. increased pricing on its $520 million six-year senior secured covenant-lite term loan B (B2/B) to SOFR plus 525 basis points from SOFR plus 500 bps, according to a market source.

In addition, the original issue discount on the term loan was changed to 87 from revised talk in the range of 85 to 86 and initial talk in the range of 96 to 97, the source said.

The term loan still has a 25 bps pricing step-down upon an initial public offering, a 0.5% floor and 101 soft call protection for one year.

Earlier in syndication, the company removed 25 bps pricing step-downs at 0.5x and 1x inside opening senior secured net leverage, the floor was increased from 0%, the call protection was extended from six months, and the maturity was shortened from seven years.

Also previously, changes were made to documentation, including to debt, fixed incremental, MFN and EBITDA, and lender calls became required every quarter in connection with delivery of quarterly and annual financials.

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

Allocations are expected on Wednesday morning, 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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