Arizona Chem sets spread on $550 million term B at Libor plus 575 bps

By Sara Rosenberg

New York, Dec. 19 - Arizona Chemical Inc. firmed pricing on its $550 million six-year term loan B at Libor plus 575 basis points, the wide end of the Libor plus 550 bps to 575 bps talk, according to a market source.

As before, the loan has a 1.5% Libor floor, an original issue discount of 97 and soft call protection of 102 in year one and 101 in year two.

Earlier in syndication, the term B had been downsized from $750 million.

The company's $610 million credit facility also includes a $60 million five-year revolver, according to the source.

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

Proceeds will fund a dividend, the size of which was reduced with the term loan B downsizing, and will 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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