Kohler Energy upsizes term loan B, sets tranching, widens price talk

By Sara Rosenberg

New York, Jan. 29 – Kohler Energy (Discovery Energy Holding Corp.) upsized its seven-year U.S. and euro term loan B (B1/B) to roughly $1.65 billion equivalent from $1.625 billion equivalent and set the U.S. tranche size at $1.275 billion and the euro tranche size at €350 million, according to a market source.

Also, pricing on the U.S. and euro term loans was increased to SOFR/Euribor plus 475 basis points from talk in the range of SOFR/Euribor plus 375 bps to 400 bps, the source said.

In addition, the original issue discount talk on the term loans was revised to a range of 96.5 to 97 from 98, the call protection was changed to a 101 hard call for one year from a 101 soft call for six months, and some modifications were made to documentation.

The term loans still have a 0% floor, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

BofA Securities Inc., Goldman Sachs, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities, Mizuho, Nomura, Santander, Stifel and UBS Investment Bank are the arrangers on the deal.

Commitments are due at 11 a.m. ET on Tuesday, the source added.

Proceeds will be used to help fund the acquisition of a majority stake in Kohler Co.’s energy division by Platinum Equity, and the funds from the upsizing will fund the original issue discount. Kohler will continue to stay invested in the energy business following completion of the transaction.

Closing is expected in the first half of this year.

Kohler Energy is a provider of mission critical power solutions to homes, businesses and equipment.

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