W.R. Grace cuts term B to $1.25 billion, firms at Libor plus 375 bps

By Sara Rosenberg

New York, Aug. 11 – W.R. Grace & Co. downsized its term loan B due 2028 to $1.25 billion from $1.45 billion and set pricing at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

In addition, the original issue discount on the term loan was tightened to 99.75 from talk in the range of 99 to 99.5, the source said.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

JPMorgan Chase Bank, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the leads on the deal.

Proceeds will be used to help fund the acquisition of the company by Standard Industries Holdings Inc. for $70.00 per share in cash. The transaction is valued at about $7 billion.

The company is also getting $1.155 billion of senior notes for the transaction, upsized from $955 million with the term loan downsizing.

Closing on the acquisition is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

W.R. Grace will operate as a stand-alone company within the portfolio of Standard Industries Holdings.

W.R. Grace is a Columbia, Md.-based specialty chemical company. Standard Industries Holdings is a New York-based industrial company.

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