Strategic Materials trims pricing on first-, second-lien term loans

By Sara Rosenberg

New York, Oct. 26 – Strategic Materials Inc. reduced pricing on its $235 million seven-year first-lien term loan (B2/B) to Libor plus 375 basis points from Libor plus 400 bps and on its $80 million eight-year second-lien term loan (Caa2/CCC+) to Libor plus 775 bps from Libor plus 800 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was changed to 99.75 from 99.5 and the discount on the second-lien term loan was tightened to 99 from 98.5, the source said.

Furthermore, a 25 bps pricing step-down at 4 times net first-lien leverage that was previously contemplated in the marketing term sheet for the first-lien term loan was confirmed with the release of final pricing.

As before, the first-lien term loan has a 1% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $355 million of senior secured credit facilities also include a $40 million revolver (B2/B).

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

Recommitments were scheduled to be due at noon ET on Thursday, 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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