Pricing flexed up on the $265 million refinancing for Transportation Technologies Industries (TTI). The $115 million term loan is now being talked at LIBOR plus 33/4%, up from LIBOR plus 31/2%, while the $100 million second-lien "B" loan flexed up 1% to LIBOR plus 6%.
A buysider cited ratings as a cause for the spread increase. The first lien is rated B/B2 and the second lien is rated CCC+/B3. Pro forma total debt-to-EBITDA leverage is about 6.6 times. "It's a pretty levered deal," the buysider said. "The company has been struggling, they're just tranching out the debt right now to give it some relief."
Credit Suisse First Boston, Lehman Brothers and Wachovia Securities are the leads on the debt, which also includes a $60 million revolver carrying a spread of LIBOR plus 3%. Proceeds of the facility will be used to refinance the company's existing credit facility and redeem $20 million of TTI's 15% guaranteed senior subordinated notes. The company had $327 million of total debt at Dec. 31, 2003. TTI makes components for trucks, buses and specialty vehicles. Donald Mueller, TTI's cfo, and CSFB, Lehman and Wachovia bankers did not return calls.