Axiall drives by with $200 million term loan for refinancing

By Sara Rosenberg

New York, March 13 - Axiall Corp. launched in the morning - without a call or meeting - a $200 million senior secured term loan due Jan. 28, 2017, according to a market source.

The term loan was launched with talk of Libor plus 250 basis points to 275 bps with a 1% Libor floor and an original issue discount of 99½ to 993/4, the source said.

However, shortly before midday, pricing on the loan was updated to Libor plus 250 bps with a 1% Libor floor and a par offer price, the source continued.

Included in the loan is 101 soft call protection through Jan. 28, 2014 and a consolidated secured debt covenant of 3.5 times.

Commitments were due at 2 p.m. ET on Wednesday, after being accelerated from 4 p.m. ET.

Barclays, J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC are the bookrunners on the deal.

Proceeds, along with ABL loan borrowings, will be used to refinance an existing term loan due Jan. 28, 2017 that is priced at Libor plus 275 bps with a 1% Libor floor.

Senior secured leverage is 0.4 times and total leverage is 1.9 times.

Expected loan ratings are Ba1/BBB-, the source added.

The borrower of the loan is Eagle SpinCo Inc.

Axiall is an Atlanta-based manufacturer of chemicals, plastics and building products.

© 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.