Auto parts maker ti automotive raised US$450m from a new bond on Thursday to fund its US$2.5bn acquisition by Bain Capital, but it had to pay up for it - and cut the size of the deal. The company, rated Caa1/B, had to pay up to 100bp more than first expected to get the eight-year non-call three transaction over the line. It also cut the size of the deal by US$100m from the US$550m originally targeted, making up for the shortfall by increasing the size of a term loan by US$100m. The deal was seen as a test of investor appetite for highly leveraged deals from a sector that is still recovering from the devastating effects of the financial crisis.
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