Form Technologies launches $640M term loan; commitments due Feb. 11

Form Technologies held a lender call this morning to launch a $640 million first-out first-lien term loan due July 2025 that will extend maturities, repay debt and fund general corporate purposes, according to sources. Commitments to the J.P. Morgan-led deal are due at noon ET on Feb. 11.

Price talk is L+500, with a 1% Libor floor and a 50-basis-point step-down upon achieving a B- equivalent rating, subject to a step back up upon a subsequent downgrade. Consent fees include 50 bps payable in cash on the existing first-lien term loan and 100 bps PIK on the extended first-lien. The loan will be callable at 102 and 101 in years one and two, respectively, and at par thereafter.

The existing covenant-lite term loan due January 2022 was originally issued when the company was known as Dynacast International Inc. Pricing was set at L+325, with a 1% floor, following a 2017 repricing and add-on. The company's outstanding debt also includes a second-lien term loan due January 2022 priced at L+850, with a 1% floor.

Current facility ratings are CCC/Caa1 and corporate ratings are CCC/Caa2, with negative outlooks on both sides.

Form Technologies, based in Charlotte, N.C., is a manufacturer of precision engineered metal components. The company is backed by Partners Group, Kenner & Co. and American Industrial Partners.