Arclin finalizes term loan at tight end, raises add-on to $80 million

New York, Jan. 29 – Arclin set pricing on its term loan transaction at the narrow end of talk and upsized the incremental term loan to $80 million from $40 million previously, according to a market source.

The $478 million term loan due February 2024 (B2/B+) and $80 million incremental loan (B2/B+) are priced at Libor plus 350 basis points, the narrow end of talk for a coupon of Libor plus 350 bps to 375 bps.

As previously, the repriced term loan is being offered at par while the incremental loan, which has the same maturity, is offered at 99.75.

Both have a 1% Libor floor and 101 soft call protection for six months.

The borrower is New Arclin U.S. Holding Corp.

Credit Suisse is the lead on the deal.

Commitments are due on Jan. 30.

Proceeds from the incremental loan will be used to repay part of the company’s second-lien term loan. With the upsizing, proceeds from the incremental loan will also be used to pay a distribution to shareholders.

The repricing will reduce the coupon from Libor plus 425 bps at present.

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

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