Nusil Technology LLC, a manufacturer of silicone-based materials for aerospace, electronics and health-care industries, is seeking a $100 million covenant-lite term loan to fund a dividend to shareholders, according to a person with knowledge of the transaction.
The debt, maturing in April 2017, will pay interest at 4 percentage points more than the London interbank offered rate, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
Nusil is proposing to sell the loan at 99.5 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
Lenders are being offered six months of soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first six months.
Credit Suisse Group AG is arranging the financing and will host a lender call tomorrow at 11 a.m. in New York with commitments being due Feb. 14, according to the person.
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