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OM Group reworks U.S. and euro term loan sizes, lowers pricing
By Sara Rosenberg
New York, July 27 - OM Group Inc. shifted funds between its U.S. and euro term loan Bs, upsizing the U.S. piece to $350 million from $300 million and downsizing the euro piece to the equivalent of $250 million from $300, and reduced the spread on the term loan debt, according to sources.
The U.S term loan B is now priced at Libor plus 425 basis points, down from talk of Libor plus 475 bps to 500 bps, and the euro term loan B is priced at Euribor plus 475 bps, down from Euribor plus 500 bps, sources said.
As before, both term loan Bs have a 1.5% floor, and original issue discount of 99 and 101 soft call protection for one year.
Pricing on the $200 million revolver and $100 million term loan A was left unchanged at Libor plus 375 bps with no Libor floor.
Bank of America Merrill Lynch, PNC Capital Markets LLC and BNP Paribas Securities Corp. are the lead banks on the $900 million senior secured credit facility (Ba2/BB-), 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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