American Pacific firms $330 million term B at Libor plus 600 bps

By Sara Rosenberg

New York, Feb. 26 - American Pacific Corp. set pricing on its $330 million five-year term loan B at Libor plus 600 basis points, the tight end of the Libor plus 600 bps to 650 bps talk, according to a market source.

Also the original issue discount was changed to 99¼ from 99, and the call protection was shortened to 102 for one year then 101 for six months from 102 in year one and 101 in year two, the source said.

The term loan still has a 1% Libor floor.

The company's $365 million senior secured credit facility also includes a $35 million 41/2-year revolver.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by H.I.G. Capital LLC for $46.50 per share.

Other funds for the roughly $392 million buyout will come from up to $124.3 million in equity.

Completion of the transaction is subject to customary conditions.

In its fiscal year ended Sept. 30, 2013, the company generated adjusted EBITDA of $43 million on revenue of $215.1 million, and management is forecasting 2014 revenue of at least $225 million and adjusted EBITDA of at least $45 million. =

Net leverage is 4.8 times.

American Pacific is a Las Vegas-based custom manufacturer of fine chemicals and specialty chemicals.

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