The Baldwin Group Announces Successful Pricing with Improved Terms for $840 Million Term Loan B and $600 Million Revolver
The new term loan facility will bear interest at term SOFR, plus an applicable margin of 325 bps, with a margin step-down to 300 bps at a first lien net leverage ratio of 4.00x or below. The new revolving facility will bear interest at term SOFR, plus a credit spread adjustment of 10 bps, plus an applicable margin between 200 bps and 300 bps.
The following tables show our long-term debt as of
As of |
|
|||||||||||
Instrument |
|
Long-term debt |
|
Available for borrowing |
|
Borrowing rate (1) |
|
Rate as of |
|
Maturity |
||
Amounts in 000s |
|
|
|
|
|
|
|
|
|
|
||
Existing term loan facility (2) |
|
$ |
996,177 |
|
$ |
— |
|
Term SOFR + 3.61% to Term SOFR + 3.93%, Term SOFR Floor of 50 bps |
|
8.940% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Existing revolving facility |
|
$ |
334,000 |
|
$ |
266,000 |
|
Term SOFR + 2.10% to Term SOFR + 3.10% |
|
8.500% |
|
|
|
|
|
|
|
|
|
|
|
|
|
As expected as of the closing date |
|
|||||||||||
Instrument |
|
Long-term debt outstanding |
|
Available for borrowing |
|
Borrowing rate (1) |
|
Rate as of closing date |
|
Maturity |
||
Amounts in 000s |
|
|
|
|
|
|
|
|
|
|
||
New notes (3) |
|
$ |
600,000 |
|
$ |
— |
|
7.125% |
|
7.125% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
New term loan facility (3) |
|
$ |
840,000 |
|
$ |
— |
|
Term SOFR + 3.25%, step-down to Term SOFR + 3.00% at First Lien Net Leverage Ratio(4) <= 4.00x |
|
8.560%(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
New revolving facility |
|
$ |
— |
|
$ |
600,000 |
|
Term SOFR + 2.10% to Term SOFR + 3.10% |
|
8.410%(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
- We have two
$600.0 million notional, 7.00% interest rate caps expiring onNovember 30, 2025 . Cash received from interest rate cap settlements from our$300.0 million notional, 1.50% interest rate cap that expired onMarch 10, 2024 was$2.3 million for the three months endedMarch 31, 2024 . - Debt outstanding under the existing term loan facility represents the principal amount of outstanding borrowings, which are presented net of unamortized debt discount and issuance costs of
$19.0 million for balance sheet presentation. - Debt outstanding under the new notes and the new term loan facility represents the principal amount of anticipated outstanding borrowings on the closing date, not taking into account unamortized debt discount and issuance costs.
- Defined as “Consolidated First Lien Debt to Consolidated EBITDA Ratio” in the related credit agreement.
- For illustrative purposes only, presented based on term SOFR as of
May 14, 2024 . Actual applicable term SOFR may be materially different.
The transactions described above are subject to market and other conditions. Therefore, there can be no assurance that
This press release is neither an offer to sell nor a solicitation of an offer to buy the new notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the new notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
ABOUT
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent our expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address our future operating, financial or business performance or our strategies, expectations, anticipated achievements or ability to raise or refinance debt. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook” or “continue,” or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption “Risk Factors” in Baldwin’s Annual Report on Form 10-K for the year ended
View source version on businesswire.com: https://www.businesswire.com/news/home/20240516824606/en/
MEDIA RELATIONS
630.561.5907 | Anna.rozenich@baldwin.com
INVESTOR RELATIONS
813.259.8032 | IR@baldwin.com
Source: