Archroma outlines sizes of U.S. and euro term loans, updates pricing

By Sara Rosenberg

New York, March 10 – Archroma set the size of its U.S term loan B due June 2027 (B2/B+) at $350 million and the size of its euro term loan B due June 2027 (B2/B+) at €455 million ($480 million equivalent), compared to talk at launch of $850 million equivalent U.S. and euro term loan debt with tranche sizes to be determined, according to a market source.

Also, pricing on the U.S. term loan was increased to SOFR plus 550 basis points from SOFR plus 525 bps and the one pricing step-down was removed, the source said.

Pricing on the euro term loan remained at Euribor plus 550 bps, but the loan now has one pricing step-down instead of two.

In addition, the original issue discount on both term loans firmed at 95, the wide end of the 95 to 96 talk, and the 101 soft call protection on both loans was extended to one year from six months, the source continued.

The U.S. term loan still has a 0.5% floor and amortization of 1% per annum, and the euro term loan still has a 0% floor and no amortization.

JPMorgan Chase Bank is the sole physical bookrunner on the U.S. loan and HSBC is a passive bookrunner, and HSBC is the sole physical bookrunner on the euro loan and JPMorgan is a passive bookrunner. Other bookrunners include BofA Securities Inc. and UBS Investment Bank. HSBC is the administrative agent.

Commitments and consents for the U.S. loan were scheduled to be due at 9:30 a.m. ET on Friday and for the euro loan were scheduled to be due at 7 a.m. ET on Friday, the source added.

Proceeds will be used to refinance/extend the company’s existing first-lien euro and U.S. term loan B borrowings due August 2024 and capital expenditures facility, and for general corporate purposes.

SK Capital is the sponsor.

Archroma is a Switzerland-based provider of specialty chemicals and solutions for the textiles, packaging & paper, paints and coatings markets.

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