US Farathane launches $308M term loan to extend maturity

US Farathane Corp. has launched a $308 million term loan B, pushing the maturity of its existing facility out by three years, to December 2024.

BofA Securities is the sole arranger on the new deal, which is guided at L+400-425, with a 1% Libor floor at 99.5. This suggests a yield to maturity of around 5.25%-5.51%. The new deal will have a 101 soft-call protection period for 12 months.

A lender call will be held at 2 p.m. ET today.

The new facility will refinance the firm's existing $478 million term loan alongside a new $175 million privately placed second-lien term loan.

Those close to the deal are guiding investors to expect corporate ratings of B/B3 and issue ratings of B/B2.

Privately held US Farathane is an Auburn Hills, Mich.–based manufacturer of single-shot and multi-shot injection-molded, compression-molded, and extruded components and assemblies.