Archroma readies launch of $515 million credit facility for Friday

By Sara Rosenberg

New York, June 11 – Archroma is scheduled to hold a lender meeting in London on Friday to launch a $515 million credit facility, according to a market source.

Bank of America Merrill Lynch and HSBC Securities are the global coordinators on the deal and bookrunners with ICICI, Credit Suisse, UBS AG and Mizuho.

The facility consists of a $75 million five-year revolver, a $220 million five-year term loan A and a $220 million euro-equivalent six-year term loan B, the source said.

Price talk on the revolver and term loan A is Libor plus 525 basis points with no floor, and talk on the term loan B is Euribor plus 600 bps with a 1% floor, the source continued.

Financial covenants include leverage and interest coverage ratios and maximum capital expenditures.

Proceeds will be used to refinance existing credit facilities and help fund the acquisition of the global textile chemicals business of BASF.

Archroma, a portfolio company of SK Capital Partners, is a Switzerland-based provider of specialty chemicals for the textile, paper and emulsions sectors.

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