UBS is expected to launch tomorrow syndication of a $175 million first-lien deal to back Aurora Capital Group's purchase of Axia and its operating subsidiaries including Ames Taping Tool Systems, TapeTech Tool Co. and Ames Taping Tools of Canada from Cortec Group. The financing is broken into a five-year, $25 million revolver and a seven-year, $150 million term loan. Both tranches are being talked at LIBOR plus 2 3/4%. Aurora and Ames management will also be making an equity contribution to the deal.
Aurora signed a definitive agreement to acquire Axia Nov. 10. Through its subsidiaries, Axia designs, manufactures, markets and distributes automatic taping and finishing tools used by residential and commercial interior drywall contractors. Calls to Scott Schafler, Cortec's president, and Gerald Parsky, a partner at Aurora, were not returned.