Syndication launched last week for a $740 million credit facility that backs the acquisition of Transportation Technologies Industries (TTI) by Accuride Corp. Citigroup and Lehman Brothers lead the facility. "We've had strong ongoing relationships with both firms," an Accuride spokeswoman said. She declined further comment. UBS is documentation agent. The credit comprises a $125 million revolver and $615 million term loan and price talk is LIBOR plus 2 1/2%.
All of Accuride and TTI's existing debt is being refinanced with the new transaction. Accuride is a portfolio company of Kohlberg Kravis Roberts & Co. Its outstanding bank debt, led by Citi and Deutsche Bank, consists of a $50 million revolver, a $96 million "C" loan and a $180 million second-lien term loan.
TTI has a $50 million revolver, a $110 million "B" loan and a $100 million second-lien term loan led by Credit Suisse First Boston, Lehman and Wachovia Securities. Accuride manufactures wheels for trucks and trailers and TTI makes truck components. Bankers and Donald Mueller, TTI's v.p., cfo and treasurer, did not return calls