Orion Engineered discloses price talk on U.S. and euro term loans

By Sara Rosenberg

New York, Oct. 17 – Orion Engineered Carbons released price talk on its $289 million first-lien senior secured term loan B due July 25, 2024 and €331 million first-lien senior secured term loan B due July 25, 2024 with its call on Tuesday, according to a market source.

The U.S. term loan is talked at Libor plus 250 basis points with a 0% Libor floor and an original issue discount of 99.75, and the euro term loan is talked at Euribor plus 275 bps with a 0% floor and a discount of 99.75, the source said.

Both term loans have 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA is the bookrunner on the deal, and mandated lead arrangers are Citizens Bank, Goldman Sachs, ING Bank and Mediobanca International (Luxembourg) SA.

Commitments are due on Friday, the source added.

Proceeds will be used to refinance an existing U.S. term loan due July 2021 that is priced at Libor plus 250 bps with a 0% Libor floor and an existing euro term loan due July 2021 that is priced at Euribor plus 275 bps with a 0% floor.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

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