Arclin shifts funds between first- and second-lien loans, cuts pricing

By Sara Rosenberg

New York, Feb. 8 – Arclin upsized its seven-year covenant-light first-lien term loan to $480 million from $465 million and downsized its eight-year covenant-light second-lien term loan to $125 million from $140 million, according to a market source.

Also, pricing on the first-lien term loan was lowered to Libor plus 425 basis points from talk of Libor plus 475 bps to 500 bps, and pricing on the second-lien term loan was trimmed to Libor plus 875 bps from talk of Libor plus 900 bps to 925 bps, the source said.

In addition, the original issue discount on the first-lien term loan was changed to 99.5 from 99, and the discount on the second-lien term loan was revised to 99 from 98.5.

Both term loans still have a 1% Libor floor, the first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

The company’s $680 million credit facility also provides for a $75 million ABL revolver.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are the leads on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by Lonestar.

Arclin is an Atlanta-based provider of surface overlay solutions and performance resins.

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