Oct. 27 (Bloomberg) -- Sequa Corp., the Carlyle Group-owned servicer of jet engines and maker of automobile parts, reduced the interest rate it will pay on a $200 million incremental term loan to support its acquisition of Roll Coater Inc., according to a person with knowledge of the matter.
The company will pay 4.75 percentage points more than the London interbank offered rate and the lending benchmark will have a 1.5 percent floor, said the person, who declined to be identified because the terms are private.
Sequa, based in Tampa, Florida, will sell the debt at 99 cents on the dollar, the people said, reducing proceeds for the borrower and boosting the yield for investors.
Sequa was initially offering investors 5 percentage points to 5.25 percentage points over Libor with an original issue discount of 98.5 cents to 99 cents on the dollar, according to the person.
Barclays Plc and Credit Suisse Group AG are arranging the transaction, the person said. Commitments are due today by 5 p.m. New York time.
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