Oct. 25 (Bloomberg) -- Sequa Corp., the Carlyle Group-owned servicer of jet engines and maker of automobile parts, offered the initial interest rate it will pay on a $200 million incremental loan to support its acquisition of Roll Coater Inc., according to two people with knowledge of the matter.
The company is proposing to pay 5 percentage points to 5.25 percentage points more than the London interbank offered rate and the lending benchmark will have a 1.5 percent floor, said the people, who declined to be identified because the terms are private.
Sequa, based in Tampa, Florida, may sell the debt at 98.5 cents to 99 cents on the dollar, the people said, reducing proceeds for the borrower and boosting the yield for investors.
Barclays Plc and Credit Suisse Group AG, the banks arranging the transaction, will host a call with lenders today.
Standard & Poor’s yesterday assigned a B- rating to the loan, which matures in December 2014.
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