Orion Engineered sets U.S. and euro term loan sizes, issue prices

By Sara Rosenberg

New York, Sept. 24 – Orion Engineered Carbons SA set its U.S. seven-year senior secured term B (Ba2/BB) at $300 million and its euro seven-year senior secured term B (Ba2/BB) at €300 million, versus talk at launch of a $650 million equivalent U.S. and euro term loan B with tranching to be determined, according to a market source.

Also, the original issue discount on the U.S. term loan firmed at 99.5, the tight end of the 99 to 99.5 talk, and the issue price on the euro term loan was revised to par from talk in the range of 99 to 99.5, the source said.

Pricing on the U.S. term loan remained at Libor plus 225 basis points with a 0.5% Libor floor, and pricing on the euro term loan remained at Euribor plus 250 bps with a 0% floor.

The term loans have an SDG-linked margin ratchet of plus/minus 10 bps linked to meeting two key performance indicators, and 101 soft call protection for six months.

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.

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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