MacDermid plans to launch $1.14 billion credit facility on Tuesday

By Sara Rosenberg

New York, May 22 - MacDermid Inc. will hold a bank meeting at 2 p.m. ET in New York on Tuesday to launch a $1.14 billion senior secured credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $50 million five-year revolver, a $755 million seven-year covenant-light first-lien term loan and a $335 million 71/2-year covenant-light second-lien term loan, the source said.

Price talk on the first-lien term loan is Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 991/2, and talk on the second-lien term loan is Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99, the source continued.

Included in the first-lien loan is 101 repricing protection for six months, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds will be used to refinance existing debt and repay preferred equity.

On Wednesday, the company announced a cash tender offer for its $350 million 9½% senior subordinated notes due 2017.

The offer will expire on June 19 and is subject to the entrance into the new credit facility.

MacDermid is a Denver-based manufacturer of specialty chemicals to the electronics, industrial, offshore and printing industries.

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