Archroma readies launch of $360 million credit facility for Monday

By Sara Rosenberg

New York, Sept. 12 - Archroma is scheduled to hold a bank meeting on Monday to launch a $360 million credit facility, according to a market source.

Jefferies Finance LLC is leading the deal.

The facility consists of a euro equivalent $50 million 41/2-year revolver and a $310 million five-year term loan B, the source said.

Price talk on the B loan is Libor plus 825 basis points with a 1.25% Libor floor and an original issue discount of 98, the source continued.

The term loan B is non-callable for one year, then at 101 in year two.

Proceeds will be used to help fund SK Capital Partners' acquisition of the textile chemicals, paper specialties and emulsions businesses (to be named Archroma) of Clariant International for about $500 million and the assumption of some pension liabilities.

Together, the businesses generate revenues of around $1.3 billion.

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