MacDermid updates amendment, revising call protection and consent fee

By Sara Rosenberg

New York, Oct. 17 - MacDermid Inc. revised the amendment proposal to its first-lien credit facility to provide for an extension of the current 101 soft call protection to June 7, 2014 from Dec. 7 and increase the consent fee to 10 basis points from 5 bps, according to a market source.

The amendment would also now change the pricing grid after Sept. 30, 2014 to Libor plus 300 bps if net senior secured first-lien leverage is 3.25 times and Libor plus 275 bps if net senior secured first-lien leverage is less than 3.25 times, the source said.

Current pricing on the loan is Libor plus 300 bps with a step-down to Libor plus 275 bps when total net leverage is less than 5.75 times.

The amendment is being done in connection with the company's acquisition by Platform Acquisition Holdings Ltd. for about $1.8 billion.

As before, the amendment would revise the change of control provision to permit the new ownership and the restricted payments would be changed to allow the repayment of the company's $360 million second-lien term loan in full.

The amendment would also name Barclays as the administrative agent and letter-of-credit issuer and Platform Acquisition would be added as a co-borrower.

Funds for the acquisition will come from proceeds from Platform's previously completed initial public offering and proceeds from a warrant exchange offer.

Pro forma for the transaction, MacDermid's net debt to EBITDA will be 3.8 times, down from 6.1 times currently.

Barclays is leading the amendment.

Consents are due at noon ET on Friday.

Closing on the acquisition is expected by the end of October, subject to customary conditions.

MacDermid is a Denver-based provider of high value-added specialty chemicals.

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