Davis-Standard lifts term loan to $465 million, sets OID at 95

By Sara Rosenberg

New York, Dec. 15 – Davis-Standard LLC (DS Parent Inc.) upsized its seven-year covenant-lite term loan B to $465 million from $450 million and firmed the original issue discount at 95, the wide end of revised talk of 95 to 96 and wider than initial talk in the range of 97 to 98, according to a market source.

Pricing on the term loan is SOFR plus 550 basis points with a 0.75% floor.

The term loan has 101 soft call protection for six months.

Earlier in syndication, pricing on the term loan finalized at the high end of the SOFR plus 525 bps to 550 bps talk and a 25 bps step-down at less than 3.25x first-lien net leverage was removed.

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.

Proceeds will be used to fund the acquisition of the Extrusion Technology Group from Nimbus and to refinance existing debt, and the funds from the upsizing will pay for the wider original issue discount.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.