MHS launches $25 million add-on term loan B at par issue price

By Sara Rosenberg

New York, Oct. 23 – MHS (Material Handling Systems) launched on its lender call on Monday a fungible $25 million add-on term loan B that is talked with an issue price of par, according to a market source.

Pricing on the add-on term loan matches pricing on the existing $240 million term loan B at Libor plus 500 basis points with a 1% Libor floor, the source said.

With the add-on, the company is looking to replace the current financial maintenance covenant under the term loan B with a springing financial covenant.

RBC Capital Markets is the lead on the deal.

Commitments are due on Oct. 30, the source added.

Proceeds will be used for acquisitions.

MHS is a Louisville, Ky.-based provider of e-commerce infrastructure.

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