Draslovka ups term loan B to $348 million, changes OID to 94.5

By Sara Rosenberg

New York, Nov. 16 – Draslovka Holding (Manchester Acquisition Sub LLC) lifted its five-year term loan B to $348 million from $335 million and tightened the original issue discount to 94.5 from revised talk of 94, but it is still wider than initial talk of 98, according to a market source.

Pricing on the term loan is SOFR+CSA plus 575 basis points with a 0.75% SOFR+CSA floor.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has call protection of non-callable for two years, then at 50% of the yield in year three and 25% of the yield in year four.

Earlier in syndication, pricing on the term loan was increased from talk in the range of SOFR+CSA plus 525 bps to 550 bps, the call protection was changed from a 101 soft call for one year, the maturity was shortened from seven years, a maintenance covenant was added, amortization was added, MFN was revised to 50 bps for life, and changes were made to, among other things, incremental debt, excess cash flow sweep and restricted payments.

JPMorgan Chase Bank is the lead on the deal and the administrative agent.

Proceeds will be used to help fund the acquisition of the Mining Solutions business of Chemours Co. for a total consideration of $520 million, and the upsizing of the term loan will be used to pay additional fees and expenses.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

Draslovka is a Czech-based specialty chemicals company focused on applications for gold, agriculture, electronics and other industries.

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