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Grohe Holding GmbH, a maker of bathroom fixtures, has asked for European and U.S. lenders to commit to its 300 million-euro ($397 million) loan by 5 p.m. London and New York-time today respectively, according to a person with direct knowledge of the deal.
The first-lien term loan, which will be denominated in euros and dollars, is being arranged by Credit Suisse Group AG, Deutsche Bank AG and Morgan Stanley and proceeds will be used to refinance 300 million euros of outstanding 2014 floating-rate bonds, said the person, who declined to be identified as the terms are private.
The company may pay interest at 550 basis points more than euro interbank offered rate for the loan, with a 1.25 percent floor on the benchmark lending rate, according to data compiled by Bloomberg. The deal may be priced at 98.5 cents on the euro, reducing the proceeds for Grohe and boosting the yield to investors. A basis point is 0.01 percentage point.
Lenders attended bank meetings in London on May 2 and in New York on May 4, said the person. The deadline for commitments was originally May 16.
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