Bear Stearns Sells Covenant-Light Magnaquench Deal
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Bear Stearns Sells Covenant-Light Magnaquench Deal

Bear Stearns is in the market with a $175 million “B” loan for magnet supplier Magnequench that has a bond covenant package.

Bear Stearns is in the market with a $175 million “B” loan for magnet supplier Magnequench that has a bond covenant package. “It gives the company the flexibility you get with a bond deal, but the company generates a tremendous amount of free cash flow and there is a fair amount of stated amortization,” a source familiar with the deal said.


“It gives you the prepayability of a bank deal with the flexibility that you get with a bond financial covenant package.” The first-lien term loan hit the market last week at LIBOR plus 6%. Todd Boney, Magnequench’s cfo, did not return calls and Bear Stearns bankers declined comment.

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