OM Group reveals price talk on $900 million facility with launch

By Sara Rosenberg

New York, July 7 - OM Group Inc. released price talk on its $900 million senior secured credit facility as the deal was launched with a bank meeting on Thursday, according to a market source.

The $200 million revolver and the $100 million term loan A are being talked at Libor plus 375 basis points with no Libor floor, the source said.

Additionally, the U.S. term loan B is being talked at Libor plus 475 bps and euro term loan B is being talked at Euribor plus 500 bps, with both having a 1.5% floor and an original issue discount of 99, the source continued.

The entire term loan B, which totals $600 million, also includes 101 soft call protection for one year.

Bank of America Merrill Lynch, PNC Capital Markets LLC and BNP Paribas Securities Corp. are the lead banks on the deal, with Bank of America the left lead.

Proceeds will be used to fund the €700 million acquisition of Vacuumschmelze Holding GmbH, a Hanau, Germany-based manufacturer of industrial use advanced magnetic materials and fabricated products.

In the 12-month period ending March 31, Vacuumschmelze recorded revenues of about €389 million and operating profit of €54 million, on an IFRS basis.

Closing is expected by the end of the third quarter, subject to customary conditions and regulatory approvals.

The company's net debt to EBITDA is expected to be below 2.0 times.

OM Group is a Cleveland-based solutions provider of specialty chemicals, advanced materials, electrochemical energy storage and unique technologies.

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