Element Solutions to launch $400 million tack-on term B on Wednesday

By Sara Rosenberg

New York, June 15 – Element Solutions Inc. is set to hold a lender call at 11 a.m. ET on Wednesday to launch a fungible $400 million tack-on senior secured term loan B, according to a market source.

Goldman Sachs Bank USA is the left lead arranger on the deal.

Commitments are due at noon ET on June 23, the source added.

Proceeds will be used with cash on hand to fund the acquisition of Coventya Holding SAS for about €420 million, including the assumption or repayment of debt, subject to certain adjustments.

Closing is anticipated late in the third quarter or in the fourth quarter, subject to regulatory approvals, completion of required employee consultation procedures and other customary conditions.

Pro forma net leverage is expected to remain at or below 3x at year-end 2021.

Currently, the company has a $733 million term loan B (Ba1/BBB-) due Jan. 31, 2026 that is priced at Libor plus 200 basis points with a 0% Libor floor.

Element Solutions is a Fort Lauderdale, Fla.-based diversified specialty chemicals company. Coventya is a France-based provider of specialty chemicals for the surface finishing industry.

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