Schweitzer-Mauduit sets $350 million term loan at Libor plus 375 bps

By Sara Rosenberg

New York, Feb. 23 – Schweitzer-Mauduit International Inc. firmed pricing on its $350 million seven-year senior secured term loan (Ba2/BB-) at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, the original issue discount on the term loan finalized at 99, the tight end of the 98.5 to 99 talk, the source said.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC, BofA Securities Inc., Barclays and Truist Securities Inc. are joint bookrunners and joint lead arrangers on the deal. JPMorgan is the administrative agent.

Proceeds will be used to help fund the acquisition of Scapa Group plc, a UK-based innovation, design and manufacturing solutions provider for healthcare and industrial markets, for 210 pence in cash per scheme share. The transaction implies an equity value of about $551.9 million.

Closing is expected in the second quarter.

At close, net debt to EBITDA is estimated to be between 4x and 4.5x and is expected to steadily decline thereafter. The company anticipates its credit facility covenants will be amended in conjunction with the transaction with net debt to EBITDA covenants of 5.5x as of the end of 2021 and 4.75x as of the end of 2022.

Schweitzer-Mauduit is an Alpharetta, Ga.-based performance materials company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.