Ferro updates spreads on U.S. and euro term loans, revises OIDs

By Sara Rosenberg

New York, Feb. 7 – Ferro Corp. reduced pricing on its $357.5 million seven-year covenant-light term loan B to Libor plus 250 basis points from Libor plus 275 bps and set pricing on its €250 million seven-year covenant-light term loan B at Euribor plus 275 bps, the low end of the Euribor plus 275 bps to 300 bps talk, according to a market source.

Furthermore, the original issue discount on both term loans was changed to 99.75 from 99.5, the source said.

As before, the U.S. term loan has a 0.75% Libor floor, the euro term loan has no floor and all of the debt has 101 soft call protection for six months.

Deutsche Bank Securities Inc., PNC Bank, Bank of America Merrill Lynch and HSBC Securities (USA) Inc. are the bookrunners on the $625 million equivalent in total term loan debt (Ba3/BB-), and co-managers are J.P. Morgan Securities LLC, KeyBanc Capital Markets, Citizens and Fifth Third Bank.

Recommitments for the U.S. loan were scheduled to be due at 3 p.m. ET on Tuesday and recommitments for the euro loan are due on Wednesday morning, the source added. The deal is expected to price and allocate thereafter.

Proceeds will be used to refinance existing bank debt.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

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