Orion Engineered discloses U.S. and euro term loan price talk

By Sara Rosenberg

New York, Sept. 14 – Orion Engineered Carbons SA came out with price talk on its $650 million equivalent U.S. and euro seven-year senior secured term B (Ba2) with its lender call on Tuesday, according to a market source.

The U.S. portion of the loan is talked at Libor plus 225 basis points with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and the euro portion of the loan is talked at Euribor plus 250 bps with a 0% floor and a discount of 99 to 99.5, the source said.

The term loan debt has a SDG-linked margin ratchet of plus/minus 10 bps linked to meeting two KPIs, and 101 soft call protection for six months.

Amortization on the U.S. term loan is 1% per annum. The euro term loan has no amortization.

Goldman Sachs Bank USA is the bookrunner on the deal and a mandated lead arranger with Deutsche Bank Securities Inc., ING and UniCredit. Goldman Sachs is the agent.

Commitments and consents are due at 10 a.m. ET on Sept. 24.

Proceeds will be used to refinance an existing roughly $652 million equivalent term loan B.

Orion Engineered is a Luxembourg-based producer of specialty and high-performance carbon black products.

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