Oxea firms spreads on first-, second-lien loans at tight end of talk

By Sara Rosenberg

New York, June 6 - Oxea finalized pricing on its $535 million 61/2-year first-lien term loan at Libor plus 325 basis points, the low end of the revised talk of Libor plus 325 bps to 350 bps and down from initial talk of Libor plus 350 bps, according to a market source.

The first-lien term loan has a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months.

When the first pricing update was announced, the first-lien term loan was downsized from $720.5 million, the floor was cut from 1.25% and the discount was tightened from 991/2.

Meanwhile, pricing on the $325 million seven-year second-lien term loan came at Libor plus 725 bps, the low end of the revised Libor plus 725 bps to 750 bps talk and down from initial talk of Libor plus 750 bps, the source said.

The second-lien term loan has a 1% Libor floor, an original issue discount of 99½ and hard call protection of 102 in year one and 101 in year two.

In addition to the spread update earlier in syndication, the second-lien term loan saw its Libor floor cut from 1.25% and its discount tightened from 99.

The company's credit facility also includes a €450 million 61/2-year first-lien term loan and an up to €120 million revolver.

Pricing on the euro term loan firmed at Euribor plus 350 bps, the tight end of the most recent talk of Euribor plus 350 bps to 375 bps and down from initial talk of Euribor plus 375 bps.

The euro term loan has a 1% floor, and original issue discount of 99½ and the 101 soft call protection for six months.

Earlier changes made to the euro term loan included an upsizing from €200 million and a reduction in the floor from 1.25%.

With the previous size and pricing changes, Oxea removed the 18-month MFN sunset from the credit agreement, increased leverage ratios by 0.5 times to reflect the revised structure and increased the permitted change-of-control threshold to 5 times from 4.75 times.

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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