Strategic Materials sets talk on first-, second-lien term loans

By Sara Rosenberg

New York, Oct. 18 – Strategic Materials Inc. released price talk on its $235 million seven-year first-lien term loan and $80 million eight-year second-lien term loan in connection with its bank meeting on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 98.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, BMO Capital Markets and Societe Generale are the leads on the senior secured deal.

Commitments are due on Nov. 1, the source added.

Proceeds will be used to help fund the buyout of the company by Littlejohn & Co. LLC.

Strategic Materials is a Houston-based environmental services company.

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