Arizona Chemical launches $810 million loan at Libor plus 550-575 bps

By Sara Rosenberg

New York, Dec. 6 - Arizona Chemical Inc. launched a $810 million credit facility on Tuesday with price talk of Libor plus 550 basis points to 575 bps with a 1.5% Libor floor, according to a market source.

The facility consists of a $60 million five-year revolver and a $750 million six-year term loan B.

The B loan is being offered at an original issue discount of 97 and has soft call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Dec. 15.

Goldman Sachs & Co. is the lead bank on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Leverage is 1.75 times.

Arizona Chemical is a Jacksonville, Fla., supplier of pine chemicals to the adhesives, inks and coatings and oleochemicals markets.

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