Flow Control Group set to launch $625M 1st-lien, $110M 2nd-lien TLs for buyout

Flow Control Group has scheduled a lender call for 11 a.m. ET on March 3 to launch a $625 million first-lien term loan and a $110 million second-lien term loan to back the acquisition of the company by KKR and to fund deals under letters of intent, according to sources. Commitments will be due by 5 p.m. ET on March 16.

Price talk is not yet available, but the seven-year covenant-lite first-lien term loan will have six months of 101 soft call protection and the eight-year covenant-lite second-lien term loan will be covered by hard calls of 102 and 101 in years one and two, respectively. Credit Suisse is left lead arranger on the first-lien loan and UBS is left lead arranger on the second-lien loan. KKR Capital Markets is also a joint lead arranger.

The first-lien loan is split between a $525 million funded tranche and a $100 million delayed-draw tranche. The delayed-draw tranche has a ticking fee of 75 basis points that kicks in after 60 days. The borrower is Flow Merger Sub Inc.

KKR announced on Feb. 17 that it entered into a definitive agreement to acquire the company from current sponsor Bertram Capital for an undisclosed amount.

Flow Control Group, or Fluid Flow Products, Inc., distributes mission-critical flow control and industrial automation products and related services to more than 10,000 customers and 2,000 suppliers in North America.