The $75 million "B' term loan of theCredit Suisse First Boston and J.P. Morgan-led credit for Aftermarket Technology Corp. blew out last week, days after launch. The credit was launched last Monday and was two times oversubscribed by Wednesday, said a banker. He attributed the reception to a healthy market hungry for new issue and the good ratings. No changes have yet been made to the structure or pricing as a result of the blowout, said the banker. The pro rata tranches are still being worked on.
The senior unsecured BB-/Ba3 credit consists of a $50 million five-year revolver, with a coupon of LIBOR plus 2 1/4% and a 1/2% commitment fee. There is also a $95 million, five-year "A" term loan with the same spread. The "B" tranche carries a six-year tenor and pricing of LIBOR plus 3%.
ATC, a re-manufacturer of transmissions, engines, and automotive electronics for the automotive market, is undertaking a share offering process and it is a good time to re-work the capital structure, according to Mary Ryan, director of investor relations (LMW, 1/14). J.P. Morgan is lead and administration agent and CSFB is co-lead and syndication agent. Aurora Equity Partners owns 67% of the firm. Last month, Standard & Poor's raised the ratings on ATC, based off the improved financial profile. ATC derives about three-quarters of its revenues from selling re-manufactured replacement parts to automotive dealers and about one quarter from logistics services.