Platform Specialty sets talk on $1.1 billion equivalent term loans

By Sara Rosenberg

New York, Jan. 12 – Platform Specialty Products Corp./MacDermid Inc. revealed price talk on its non-fungible $1 billion incremental covenant-light term loan B-2 due June 7, 2020 and fungible €83 million add-on covenant-light term loan due June 7, 2020 with its Monday bank meeting, according to a market source.

The U.S. term loan B-2 is talked at Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, and the euro term loan is talked at Euribor plus 350 bps to 375 bps with a 1% floor and a discount of 98, the source said.

Both term loans have 101 soft call protection for one year.

Barclays, Credit Suisse Securities (USA) LLC, UBS AG and Nomura Securities International LLC are the bookrunners on the deal.

Commitments are due by noon ET on Jan. 23, the source continued.

The company is also seeking an up to $125 million increase to its revolver.

Proceeds will be used to help fund the acquisition of Arysta LifeScience Ltd. from the Permira Funds for about $3.51 billion.

Along with the new term debt, the company will reprice its existing $1,172,000,000 first-lien covenant-light term loan B due June 7, 2020 and €204.5 million first-lien covenant-light term loan B due June 7, 2020.

The existing U.S. term loan B is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, versus current pricing of Libor plus 300 bps with a 1% Libor floor, and the existing euro term loan B is talked at Euribor plus 350 bps to 375 bps with a 1% floor, compared to current pricing of Euribor plus 325 bps with a 1% floor, the source added.

Furthermore, the existing term loans will have 101 soft call protection for one year.

Closing is expected in the last week of January, subject to regulatory approval.

Platform is a Miami-based specialty chemicals company. Arysta is a Tokyo-based provider of crop solutions with expertise in agrochemical and biological products.

© 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.