Oxea revises tranche sizes, adjusts first- and second-lien price talk

By Sara Rosenberg

New York, June 3 - Oxea decreased its U.S. 61/2-year first-lien term loan to a minimum of $535 million from $720.5 million and increased its euro 61/2-year first-lien term loan to up to €450 million from €200 million, according to a market source.

The credit facility still includes a $327.5 million seven-year second-lien term loan and an up to €120 million revolver, meaning the total credit facility amount was increased by €100 million with the first-lien term loan size changes, the source said.

Also, price talk on the U.S first-lien term loan was revised to Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 993/4, from Libor plus 350 bps with a 1.25% Libor floor and an original issue discount of 991/2.

Price talk on the euro first-lien term loan was changed to Euribor plus 350 bps to 375 bps with a 1% floor and a discount of 991/2, from Euribor plus 375 bps with a 1.25% floor and a discount of 991/2, the source continued.

In addition, talk on the second-lien term loan was modified to Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 991/2, from Libor plus 750 bps with a 1.25% Libor floor and a discount of 99.

As before, both first-lien term loans have 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Other changes made to the deal include the removal of the 18-month MFN sunset, the increase of leverage ratios by 0.5 times to reflect the revised structure and the increase of the permitted change-of-control threshold to 5 times from 4.75 times, the source added.

Commitments are due at 5 p.m. ET on Tuesday.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Nomura are the lead banks on the covenant-light deal, with Deutsche the left lead on the first-lien debt and JPMorgan the left lead on the second-lien loan.

Proceeds will be used to refinance existing debt and pay a dividend to Advent International.

Oxea is a Luxembourg-based chemical company.

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