Platform Specialty trades up with incremental, repricing launch; Dynacast, Exact reveal talk

By Sara Rosenberg

New York, Jan. 12 – Platform Specialty Products Corp./MacDermid Inc. saw its first-lien term loan rise in trading on Monday following the launch of its incremental term debt and news that the existing loan will be repriced higher in connection with the new deal.

Also in the loan market, Dynacast International and Exact Holding NV disclosed price talk in connection with their bank meetings, and Duff & Phelps Corp., Ziggo Secured Finance BV and TTM Technologies Inc. joined this week’s calendar.

Platform Specialty rises

Platform Specialty’s existing first-lien term loan headed higher in the secondary market on Monday with the launch of its incremental debt and a repricing of its existing debt, according to a trader.

The term loan was quoted at 98 1/8 bid, 98 7/8 offered, up from 98 bid, 98 ¾ offered, the trader said.

In the morning, the company held its previously announced bank meeting, and with the event, 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 was disclosed.

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

Commitments are due by noon ET on Jan. 23.

Platform repricing

Along with the new term debt, Platform Specialty is offering a repricing of its existing $1,172,000,000 first-lien covenant-light term loan B due June 7, 2020 that is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, compared to current pricing of Libor plus 300 bps with a 1% Libor floor, the source continued.

Additionally, the existing €204.5 million first-lien covenant-light term loan B due June 7, 2020 would also be repriced, with talk being Euribor plus 350 bps to 375 bps with a 1% floor, versus current pricing of Euribor plus 325 bps with a 1% floor.

The existing term loans will have the same 101 soft call protection for one year as the new term loans, the source added.

Platform lead banks

Barclays, Credit Suisse Securities (USA) LLC, UBS AG and Nomura Securities International LLC are leading Platform Specialty’s incremental term loans (B1/BB).

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

The company is also seeking an up to $125 million increase to its revolver, a company news release said.

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

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

Dynacast sets talk

In other happenings, Dynacast International released talk on its first-and second-lien term loans with its Monday bank meeting, according to a market source.

The $530 million seven-year first-lien term loan (B) is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $170 million eight-year second-lien term loan (B-) is talked at Libor plus 850 bps with a 1% Libor floor, a discount of 98 to 98½, and call protection of 102 in year one and 101 in year two, the source said.

J.P. Morgan Securities LLC, Barclays and Macquarie Capital are leading the $700 million of term loans that will be used to help fund the buyout of the company by Partners Group in a transaction valued at $1.1 billion.

Partners Group is buying Dynacast from existing financial investors and is joined in the acquisition by Kenner & Co., an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction.

Closing is expected in February, subject to regulatory approvals and customary conditions.

Dynacast is a Charlotte, N.C.-based manufacturer of small, highly complex metal components.

Exact releases guidance

Exact Holding came out with price talk on the U.S. portions of its first-and second-lien term loans that launched with a bank meeting in New York during the session, sources said. A bank meeting for European investors will take place in London on Wednesday.

The U.S. piece of the $335 million seven-year first-lien term loan (B1) is talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the U.S. piece of the $125 million eight-year second-lien term loan (Caa1) is talked at Libor plus 875 bps with a 1% Libor floor, a discount of 98½, and call protection of 102 in year one and 101 in year two, source remarked.

The breakdown of U.S. and euro amounts for the $460 million equivalent of first- and second-lien term loans is still to be determined.

The company’s new credit facility also provides for a €30 million revolver (B1).

Exact being acquired

Proceeds from Exact’s credit facility will be used with equity to fund its buyout by Apax Partners for €32.00 per ordinary share.

RBC Capital Markets, Deutsche Bank Securities Inc. and ING are the bookrunners on the deal, with RBC the left lead on the first-lien debt and Deutsche the left lead on the second-lien debt.

Commitments are due on Jan. 29, sources added.

Exact is a Netherlands-based vendor of on-premise and true-cloud accounting, CRM and ERP software services for businesses.

Duff & Phelps on deck

Duff & Phelps set a conference call for 1 p.m. ET on Tuesday to launch a fungible $160 million first-lien tack-on covenant-light term loan due April 23, 2020 that is talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 98¼ to 98½ and 101 soft call protection for one year, according to a market source.

The spread and floor on the tack-on loan matches the existing term loan, and the existing term loan will get the same call protection as the tack-on debt.

The total tack-on loan is split between an $80 million funded tranche and an $80 million is delayed-draw tranche, the source said.

Commitments are due on Jan. 20.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund two acquisitions.

Duff & Phelps is a New York-based financial advisory and investment banking firm.

Ziggo readies loan

Ziggo Secured Finance will hold a bank meeting in London on Tuesday to launch up to €1,475,000,000 euro and U.S. dollar denominated term loan debt, a market source said.

Credit Suisse, Deutsche Bank and Nomura are leading the debt that is being offered in exchange for UPC Broadband B.V.’s existing term debt.

The exchange offer deadline is Jan. 20, the source remarked.

UPC currently has €2.6 billion of existing loans consisting of a €1.554 billion term loan due in March 2021 and a $1.305 billion term loan due in June 2021. Loans that are not exchanged will remain at the UPC level.

Ziggo is a Utrecht, the Netherlands-based telecommunications company.

TTM coming soon

TTM Technologies scheduled a bank meeting for Tuesday to launch a $765 million term loan B (B+), according to a market source.

J.P. Morgan Securities LLC and Barclays are leading the deal that will help fund the acquisition of Viasystems Group Inc. for $11.33 in cash and 0.706 of a share of TTM common stock. The total enterprise value of the transaction, including the assumption of debt, is about $927 million.

Closing is expected in the first half of this year, subject to regulatory approvals and Viasystems shareholder approval.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer. Viasystems is a St. Louis-based provider of complex multi-layer printed circuit boards and electro-mechanical products.

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