Monarch sets talk on $765 million of first- and second-lien term loans

By Sara Rosenberg

New York, Feb. 28 - Monarch (AI Chem Intermediate Sarl) released price talk on its $565 million first-lien term loan (Ba3/B+) and $200 million second-lien term loan (B3/B-) as ratings from Moody's Investors Service came out, according to a market source.

The first-lien term loan is talked at Libor plus 350 basis points with a 1.25% Libor floor and an original issue discount of 991/2, and includes 101 soft call protection for one year, the source said.

Meanwhile, the second-lien term loan is talked at Libor plus 750 bps with a 1.25% Libor floor and an original issue discount of 99.

The company's $885 million credit facility, which launched with a bank meeting last week, also provides for a $120 million revolver (Ba3/B+).

Commitments are due on March 7, the source added.

Deutsche Bank Securities Inc., BofA Merrill Lynch and Nomura Securities International Inc. are leading the deal.

Proceeds will be used to help fund Advent International's acquisition of Cytec Industries Inc.'s Brussels-based coating resins business for about $1.15 billion.

Other funds for the transaction will come from equity.

Closing is expected this quarter, subject to the satisfaction of regulatory requirements and other customary conditions.

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