Madrid talks U.S. and euro loans at Libor/Euribor plus 475-500 bps

By Sara Rosenberg

New York, May 20 – Madrid (AI Plex AcquiCo) came out with price talk of Libor/Euribor plus 475 basis points to 500 bps with a 0% floor and an original issue discount of 99 on its €520 million equivalent U.S. dollar seven-year term loan B and €965 million seven-year term loan B in connection with its New York bank meeting on Monday, according to a market source.

The term loans have 101 soft call protection for six months, the source said.

A bank meeting for European investors will take place in London on Wednesday.

The company’s €1,785,000,000 equivalent of credit facilities also include a €300 million 6.5-year multi-currency revolver.

Barclays, Deutsche Bank and Goldman Sachs are the physical bookrunners on the deal, with Deutsche the left lead on the U.S. piece. Mandated lead arrangers include Bank of America Merrill Lynch, Bank of China, Helaba, HSBC, RBC and NatWest. Barclays is the agent.

Commitments are due at 10 a.m. ET on June 4, the source added.

Proceeds will be used to help fund the buyout of Evonik Industries AG’s methacrylates business (Madrid) by Advent International for €3 billion.

Closing is expected by the third quarter, subject to customary conditions and regulatory approvals.

Madrid is a provider of methacrylate solutions to a variety of end markets, including paints and coatings, construction, automotive and health care.

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