Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for MacDermid, Inc. > News item |
MacDermid public-to-private financing to include $560 million loan, $465 million bonds
By Sara Rosenberg
New York, Dec. 19 - MacDermid Inc. detailed the financing plans for its public-to-private transaction, including that there will be a new $560 million senior secured credit facility and $465 million of high-yield bonds will be issued, according to an SC 13D/A filed with the Securities and Exchange Commission Tuesday.
Credit Suisse is the lead bank on the financing transactions.
The facility consists of a $510 million seven-year term loan and a $50 million six-year revolver, with both tranches priced at Libor plus 275 basis points if the corporate credit rating is B1/B+ and Libor plus 300 bps if its lower than B1/B+.
The term loan has no financial covenants and a $100 million accordion feature.
The revolver has no financial covenants if less than $10 million is borrowed. If more than $10 million is drawn, covenants include a maximum ratio of total debt to EBITDA, a minimum interest coverage ratio and a maximum capital expenditures requirement.
MacDermid's bond offering will be comprised of $250 million of senior notes and $215 million of senior subordinated notes, the filing said.
As a back-up for the bonds, the company has received a commitment for a $250 million senior increasing rate bridge loan and a $215 million senior subordinated increasing rate bridge loan.
Under the buyout agreement, Daniel H. Leever, the company's chairman and chief executive officer, and investment funds managed by Court Square Capital Partners and Weston Presidio will acquire MacDermid in a transaction valued at more than $1.3 billion, including the assumption or repayment of about $301 million of debt.
The transaction is expected to be completed in the first half of 2007, subject to receipt of MacDermid stockholder approval and regulatory approvals, as well as satisfaction of other customary closing conditions.
There is no financing condition.
MacDermid is a Denver-based specialty chemical manufacturer.
© 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.