Citadel Plastics reveals talk on upcoming first- and second-lien deal

By Sara Rosenberg

New York, Nov. 27 - Citadel Plastics Holdings Inc. came out with price talk on its $172 million first-lien term loan and $69 million second-lien term loan ahead of its Thursday bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points to 475 bps with a 1.25% Libor floor and an original issue discount of 99. The second-lien term loan is talked at Libor plus 850 bps to 875 bps with a 1.25% floor and a discount of 98, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, while the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $271 million credit facility also provides for a $30 million revolver.

GE Capital Markets is the lead bank on the deal.

Proceeds will be used to refinance existing debt and to fund a dividend.

Citadel Plastics is a Chicago-based provider of thermoset and thermoplastic compounds.

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