22 Nov, 2021

Columbus McKinnon prints $75M add-on term loan for acquisition; terms

Columbus McKinnon Corp. has completed a $75 million fungible add-on to its existing covenant-lite term loan B due April 2028 (L+275, 0.50% Libor floor) that priced tight to talk at an original issue discount of 99.875 via lead arranger J.P. Morgan, according to sources. Proceeds from the deal will be used to finance the company's acquisition of Garvey Corp. There is no ticking fee until Dec. 31, 2021, then it is 50% of the margin until Jan. 31, 2022, stepping to 100% of the margin thereafter. The company announced Nov. 4 that it was acquiring Garvey for $74 million. Pro forma net leverage is 2.8x. Columbus McKinnon designs, manufactures and markets intelligent motion solutions to ergonomically move, lift, position and secure materials.

Terms:

Borrower Columbus McKinnon Corp.
Issue $75 million fungible add-on term loan B
UoP M&A
Spread L+275
Libor floor 0.50%
Price 99.875
Tenor April 2028
YTM 3.31%
Four-year yield 3.32%
Call protection N/A
Corporate ratings B+/Ba3
Facility ratings B+/Ba2
Recovery ratings 3
Financial covenants None
Arrangers JPM/PNC/WF
Admin agent JPM
Px Talk L+275/0.50%/99.75
Sponsor Public
Notes Ticking fee: no fee through Dec. 31, 2021, 50% margin until Jan. 31, 2022, 100% margin thereafter. Tranche size now $518.9 million.

*Article amended at 5:09 p.m. ET on Dec. 2, 2021, to update arrangers.