Monarch increases first-lien term loan size to $655 million

By Sara Rosenberg

New York, March 5 - Monarch (AI Chem Intermediate Sarl) upsized its first-lien term loan (Ba3/B+) to $655 million from $565 million and the loan now includes an up to €200 million tranche, according to a market source.

Pricing on the U.S. portion of the loan is Libor plus 325 basis points, reduced from Libor plus 350 bps, the source said.

The U.S. loan still has a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

Pricing on the euro loan is talked at Euribor plus 350 bps with a 1.25% floor and a discount of 99, the source continued.

In addition, the second-lien term loan (B3/B-) was downsized to $150 million from $200 million and pricing was reduced to Libor plus 700 bps from Libor plus 750 bps.

The second-lien loan still has a 1.25% Libor floor but the original issue discount talk was revised to 99 to 99½ from just 99, the source added.

The company's now $925 million credit facility, up from $885 million, also provides for a $120 million revolver (Ba3/B+).

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, the amount of which was reduced by $40 million due to the first-lien term loan upsizing.

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

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