Trading activity was low on the break of Amsted Industries' $225 million term loan "B" and $200 million delayed-draw term loan. The "B" loan broke at 101, while the delayed draw portion broke at 100. A dealer said trading volume was low because there were few sellers. Citigroup leads the deal, which also consists of a $300 million revolver. Both the term loan "B" and revolver are priced at LIBOR plus 2%. The delayed-draw loan is priced at 50 basis points undrawn and LIBOR plus 2% drawn.
Amsted will use proceeds from the loan to refinance its existing credit facilities to provide financing for its working capital needs and to finance a potential tender offer for, or call of, the company's 10 1/4% senior notes. Moody's Investors Service assigned a B1 rating to the senior secured credit facility. According to Moody's, the delayed-draw term loan can only be used to buy back the notes after a tender offer or optional redemption. The ratings reflect Amsted's lead position in its products segment the company is a manufacturer of industrial parts serving the railroad, vehicular and construction markets. Paul Fischer, cfo of Amsted, was not available for comment.