Nexeo launches $300 million term loan B at Libor plus 375 bps area

By Sara Rosenberg

New York, Feb. 16 - Nexeo Solutions launched its $300 million 61/2-year covenant-light term loan B on Wednesday with price talk in the Libor plus 375 basis points area with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

The company's $540 million ABL revolver, meanwhile, was launched with talk of Libor plus 250 bps, the source said.

Bank of America Merrill Lynch, Citigroup and Barclays are the lead banks on the $840 million deal.

Proceeds, along with $200 million of subordinated notes, will be used to help fund TPG Capital's acquisition of Ashland Inc.'s chemical distribution business for $930 million. The business will be named Nexeo Solutions.

The transaction is expected to close prior to the end of the March quarter, subject to the receipt of certain regulatory approvals and other standard closing conditions.

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