Armacell tightens issue price on U.S. and euro tack-on loans to par

By Sara Rosenberg

New York, Feb. 23 – Armacell revised the offer price on its $36 million and €33 million tack-on first-lien covenant-light term loan debt due July 2, 2020 to par from 99½, according to a market source.

Also, the spread on the euro tack-on term loan was reduced to Euribor plus 450 basis points from Euribor plus 475 bps, and pricing on the existing €118.8 million term loan due July 2, 2020 will now be trimmed to Euribor plus 450 bps from Euribor plus 475 bps, the source said.

All of the euro debt still has a 1% floor.

The U.S. tack-on loan is still priced at Libor plus 450 bps with a 1% Libor floor, in line with existing U.S. term loan pricing.

As before, the tack-on loans have 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and ING are the leads on the deal.

Proceeds from the tack-on loans will be used to fund two bolt-on acquisitions.

Commitments continue to be due at 5 p.m. ET on Tuesday, the source added.

Armacell is a Luxembourg-based manufacturer of elastomeric foams.

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