Ashland firms $600 million term loan B at Libor plus 200 bps

By Sara Rosenberg

New York, May 23 – Ashland LLC set pricing on its $600 million seven-year senior secured covenant-light term loan B (Ba1/BB+) at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.

Also, the issue price on the term loan B was tightened to par from 99.5, the source said.

The term loan B still has a 0% Libor floor and 101 soft call protection for six months.

Amortization on the term loan B is 1% per annum.

Mandatory prepayments are from 100% of asset sale proceeds, subject to reinvestment rights, and 100% of debt issuance proceeds, subject to baskets.

Citigroup Global Markets Inc., Bank of Nova Scotia, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and PNC Bank are the joint lead arrangers on the deal. Scotia is the administrative agent.

Commitments were scheduled to be due at 5 p.m. ET on Tuesday, accelerated from noon ET on Wednesday, the source added.

Proceeds will be used to retire 3 7/8% senior notes due 2018.

Closing and funding is expected late this month.

Ashland is a Covington, Ky.-based specialty chemicals company.

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