MacDermid sets Wednesday launch for $560 million credit facility

By Sara Rosenberg

New York, Feb. 16 - MacDermid Inc. has scheduled a bank meeting for Wednesday to launch its proposed $560 million senior secured credit facility, according to a market source.

Credit Suisse, Goldman Sachs, Bear Stearns, CIBC and RBS Securities are the lead banks on the deal, with Credit Suisse the left lead.

The facility consists of a $510 million covenant-light seven-year term loan B and a $50 million six-year revolver that has trigger covenants, kicking in when more than $10 million is outstanding under the tranche, the source said.

No official price talk on the transaction has been announced. However, according to various filings with the Securities and Exchange Commission, if the corporate credit rating is B1/B+, both tranches are expected at Libor plus 275 basis points, and if the corporate credit rating is lower than B1/B+, both tranches are expected at Libor plus 300 bps.

Proceeds from the credit facility, along with $250 million of senior notes and $215 million of senior subordinated notes, will be used to fund the leveraged buyout of the company by Daniel H. Leever, the company's chairman and chief executive officer, and investment funds managed by Court Square Capital Partners and Weston Presidio in a transaction valued at more than $1.3 billion, including the assumption or repayment of about $301 million of debt.

MacDermid is a Denver-based specialty chemical manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.