Archroma updates pricing on U.S. and euro first-lien term loans

By Sara Rosenberg

New York, July 10 – Archroma set pricing on its $225 million first-lien term loan B-2 (B1/B) at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, according to a market source.

In addition, pricing on the company’s $455 million seven-year euro equivalent covenant-light first-lien term loan B-1 (B1/B) was reduced to Euribor plus 400 bps from talk of Euribor plus 425 bps to 450 bps, and the original issue discount was tightened to 99.75 from 99.5, the source said.

The U.S. first-lien term loan still has an original issue discount of 99.5.

As before, both term loans have a 0% floor and 101 soft call protection for six months.

The company’s $880 million equivalent credit facilities also include a $200 million eight-year second-lien term loan (Caa1) that was privately placed.

Bank of America Merrill Lynch and HSBC are the leads on the deal, with Bank of America the left lead on the U.S. first-lien term loan and HSBC the left lead on the euro first-lien term loan and the second-lien term loan.

Proceeds will be used to refinance existing debt.

Archroma is a Switzerland-based provider of specialty chemicals for the textile, paper and emulsions sectors.

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