Kohler Energy cuts term loan B to $1.27 billion, firms OID at 97

By Sara Rosenberg

New York, Jan. 30 – Kohler Energy (Discovery Energy Holding Corp.) downsized its U.S. seven-year term loan B (B1/B) to $1.265 billion from $1.275 billion, according to a market source.

In addition, the original issue discount on the U.S. term loan, as well as on the company’s €350 million seven-year term loan B (B1/B), was set at 97, the tight end of revised talk of 96.5 to 97 but wider than initial talk of 98, the source said.

Pricing on the term loans is SOFR/Euribor plus 475 basis points with a 0% floor.

The term loans have 101 hard call protection for one year, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Previously in syndication, the total amount of term loan debt was revised from initial talk of roughly $1.625 billion equivalent, pricing was increased from talk in the range of SOFR/Euribor plus 375 bps to 400 bps, the call protection was changed from a 101 soft call for six months, and some modifications were made to documentation.

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.

Proceeds will be used to help fund the acquisition of a majority stake in Kohler Co.’s energy division by Platinum Equity. 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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