MacDermid gets consents needed for change of control amendment

By Sara Rosenberg

New York, Oct. 23 - MacDermid Inc. received lender approval of its first-lien credit facility amendment that revises the change of control provision to permit its acquisition by Platform Acquisition Holdings Ltd. for about $1.8 billion, according to a market source.

The amendment also allows for the repayment of the company's $360 million second-lien term loan in full, names Barclays as the administrative agent and letter-of-credit issuer and adds Platform Acquisition as a co-borrower

In addition, the amendment extends the current 101 soft call protection to June 7, 2014 from Dec. 7 and changes the pricing grid after Sept. 30, 2014 to Libor plus 300 basis points 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.

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 call protection and pricing grid adjustments were added to the amendment proposal after launch.

Lenders are getting a 10 bps consent fee, which was increased earlier from 5 bps.

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

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.

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

© 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.