Constellium trims loan to $200 million, flexes to Libor plus 800 bps

By Sara Rosenberg

New York, May 22 - Constellium Holdco BV downsized its six-year term loan B to $200 million from a most recent size of $250 million and an original amount at launch of $350 million, according to a market source.

In addition, pricing on the loan was increased to Libor plus 800 basis points from revised talk of Libor plus 725 bps and initial talk of Libor plus 625 bps to 650 bps, the source said.

The original issue discount remained at 97, which is where it moved to earlier from 98, and the 1.25% Libor floor was left intact.

The debt is non-callable for one year, then at 104 in year two, 102 in year three and 101 in year four. This was revised from non-callable for one year, then at 102 in year two and 101 in year three, and last week from 103 in year one, 102 in year two and 101 in year three.

Deutsche Bank Securities Inc., Barclays Capital Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

Covenants include a maximum net secured leverage ratio.

Proceeds will be used to refinance existing debt. With the downsizing, plans to pay a dividend were terminated.

Constellium is a Paris-based designer and manufacturer of aluminum products and components.

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