Axalta decreases U.S. term loan B size in favor of larger euro term B

By Sara Rosenberg

New York, Dec. 7 – Axalta Coating Systems downsized its U.S. term loan B due February 2023 to $1,545,000,000 from $1,775,000,000 and upsized its euro term loan B due February 2023 to €400 million from €187 million, according to a market source.

Also, pricing on the euro term loan was lowered to Euribor plus 225 basis points from talk of Euribor plus 250 bps, the source said.

Pricing on the U.S. term loan remained at Libor plus 250 bps.

In addition, the issue price on both term loans was tightened to par from talk of 99.5 to 99.75, the source continued.

Both term loans still have a 0.75% floor and 101 soft call protection for six months.

Barclays is the bookrunner on the deal (Ba1/BBB-).

Recommitments were scheduled to be due at 1 p.m. ET on Wednesday, the source added.

Proceeds will be used with cash on hand to refinance $1,775,000,000 in term loans due 2020 priced at Libor plus 275 bps with a 1% Libor floor and €187 million in term loans due 2020 priced at Euribor plus 300 bps with a 1% Euribor floor, and to pay related transaction fees and expenses.

The transaction will feature certain covenant changes to the existing credit agreement.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of coatings systems.

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