Minerals Technologies shifts funds between term B and fixed-rate loan

By Sara Rosenberg

New York, June 22 – Minerals Technologies Inc. upsized its term loan B due May 2021 to $1,078,000,000 from $1,028,000,000 and downsized its fixed-rate term loan to $300 million from $350 million, according to a market source.

Also, the issue price on the term loan B firmed at par, the tight end of the 99.75 to par talk, and the issue price on the fixed-rate term loan widened to 99.75 from par, the source said.

In addition, pricing on the fixed-rate term loan finalized at 4.75%, the high end of the 4.5% to 4.75% guidance, the source added.

Pricing on the term loan B remained at Libor plus 300 basis points with a step-down to Libor plus 275 bps if net leverage is below 2.25 times starting in the second quarter after closing, and a 0.75% Libor floor.

The term loan B still has 101 soft call protection for six months, and the fixed-rate loan is still non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance/reprice an existing term loan B that is priced at Libor plus 325 bps with a step-down to Libor plus 300 bps at 2.5 times net total leverage and a 0.75% Libor floor.

Minerals Technologies is a New York-based resource- and technology-based growth company that develops, produces and markets a broad range of specialty mineral, mineral-based and synthetic mineral products and related systems and services.

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