Axalta Coating adds pricing step-downs to U.S. and euro term loans

By Sara Rosenberg

New York, Jan. 17 - Axalta Coating Systems (previously known as DuPont Performance Coatings) added leverage-based pricing step-downs to its $2,283,000,000 covenant-light term loan due Feb. 1, 2020 and its €397 million covenant-light term loan due Feb. 1, 2020, according to a market source.

The U.S. term loan now has a step-down to Libor plus 275 basis points if net total leverage is 4.5 times, and the euro term loan now has a step-down to Euribor plus 300 bps if net total leverage is 4.5 times, the source said.

As before, initial pricing on its U.S. term loan is Libor plus 300 bps and initial pricing on the euro term loan is Euribor plus 325 bps.

Both loans still have a 1% floor, a par offer price and 101 soft call protection for six months.

Recommitments are due by noon ET on Tuesday, the source added.

Barclays, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are the bookrunners on the deal.

Proceeds will be used to reprice an existing U.S. term loan from Libor plus 350 bps with a 1.25% Libor floor, and an existing euro term loan from Euribor plus 400 bps with a 1.25% floor.

Axalta is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

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