Milacron finalizes spread on $947 million term B at Libor plus 300 bps

By Sara Rosenberg

New York, Jan. 24 – Milacron LLC firmed pricing on its $947 million upsized and extended term loan B (B2/B) at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, according to a market source.

The loan has a step-down to Libor plus 275 bps when leverage is less than 3.5 times, the source said.

Also, the original issue discount on the new money portion was tightened to 99.625 from 99.5, the source continued.

The term loan still has no Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Bank of America Merrill Lynch is the left lead bank on the deal.

Proceeds from the upsize will be used with cash on hand to repay all or a portion of the company’s $465 million 7¾% senior notes due 2021 and to pay fees and expenses associated with the refinancing transactions.

As of Sept. 30, the company had $482 million outstanding under its term loan due September 2020.

Milacron is a Cincinnati-based provider of plastics processing technologies and industrial fluids.

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