OM Group sets Tuesday bank meeting for $575 million term loan debt

By Paul A. Harris

Portland, Ore., Oct. 5 – OM Group Inc. plans to roll out $575 million of term loan debt at a bank meeting scheduled to start at 11 a.m. ET on Tuesday, according to a market source.

The deal includes $450 million equivalent of seven-year first-lien term loan paper. The tranches include $300 million of dollar-denominated paper and $150 million equivalent of euro-denominated paper.

Price talk for both first lien tranches is Libor plus 550 basis points with a 1% Libor floor at 98. The first-lien loans have 101 soft call protection for six months.

The deal also includes a $125 million of eight-year second-lien term loan talked at Libor plus 950 bps with a 1% Libor floor at 97. The second lien loan comes with a year of call protection, then becomes callable at 103, with the call premium stepping down to 102 after two years and to 101 after three years.

Credit Suisse Securities (USA) LLC is the lead.

Proceeds will be used to help fund the acquisition of the company by Apollo Global Management LLC.

Credit ratings remain to be determined.

OM Group is a Cleveland-based technology-driven diversified industrial company.

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