Tank Holding reveals talk on $490 million credit facility with launch

By Sara Rosenberg

New York, Feb. 26 – Tank Holding Corp. launched on Thursday its $490 million senior secured credit facility (B) with price talk of Libor plus 400 basis points to 425 bps and an original issue discount of 99, according to a market source.

The facility consists of a $50 million six-year revolver and a $440 million seven-year covenant-light term loan B.

The revolver has no Libor floor, and the term loan B has a 1% Libor floor and 101 soft call protection for six months, the source said.

Included in the revolver is a total net leverage covenant that springs into effect when revolver usage exceeds 30%.

Commitments are due on March 11, the source continued.

GE Capital Markets and RBC Capital Markets are the leads on the deal.

Proceeds will be used to refinance existing debt, including the pay down of $25 million of senior notes, and to fund a distribution to shareholders. The maturity on the remaining senior notes will be extended to eight years from the closing date.

Pro forma for the transaction, senior leverage will be 4.4 times and total leverage will be 6.2 times, the source added.

Tank Holding, a Leonard Green & Partners portfolio company, is a manufacturer of proprietary rotational molded polyethylene and steel storage tanks and containers used in above-ground, below-ground and portable applications. The company has headquarters in St. Bonifacius, Minn., and Lincoln, Neb.

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