Arizona Chemical reduces term loan B size to $550 million

By Sara Rosenberg

New York, Dec. 16 - Arizona Chemical Inc. downsized its six-year term loan B to $550 million from $750 million and, as a result, its planned dividend payment was reduced, according to sources.

Price talk on the B loan was left unchanged at Libor plus 550 basis points to 575 bps with a 1.5% Libor floor and an original issue discount of 97, sources said.

As before, the term loan B has soft call protection of 102 in year one and 101 in year two.

The company's now $610 million credit facility, down from $810 million, still provides for a $60 million five-year revolver talked at Libor plus 550 bps to 575 bps with a 1.5% Libor floor.

Goldman Sachs & Co. is the lead bank on the deal. Jefferies & Co. and Macquarie Capital are co-managers.

In addition to funding a dividend, proceeds will be used to refinance existing debt.

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

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