Arizona Chemical to launch $470 million term loan repricing on Tuesday

By Sara Rosenberg

New York, Feb. 28 - Arizona Chemical Inc. is set to hold a conference call on Tuesday to launch a repricing of its $470 million term loan B, according to a market source.

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

The term loan B is being talked at Libor plus 325 basis points to 350 bps with a 1.5% Libor floor and a par offer price, the source said.

There is 101 soft call protection for one year.

By comparison, when the loan was obtained late last year, it was priced at Libor plus 500 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 soft call protection for one year, so existing guys are being taken out at 101 with this repricing transaction.

The original deal was used to help fund the company's buyout by American Securities.

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

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