Orion Engineered lifts talk on term loans to Libor plus 375-400 bps

By Sara Rosenberg

New York, Aug. 5 – Orion Engineered Carbons SA raised price talk on its €665 million equivalent seven-year term loan to Libor/Euribor plus 375 basis points to 400 bps from Libor/Euribor plus 325 bps, according to a market source.

The term debt still has a 1% floor, an original issue discount of 99˝ and 101 soft call protection for six months.

Of the total term loan amount, about €265 million equivalent is expected to be denominated in dollars and the remainder will be in euros.

The €780 million credit facility also includes a €115 million multicurrency five-year revolver.

Recommitments are due at the end of the day on Thursday, the source added.

Goldman Sachs Bank USA and UBS AG are the joint global coordinators and joint bookrunners on the deal; Barclays, JPMorgan and Morgan Stanley are joint bookrunners; and DZ Bank AG, Fifth Third Bank, HSBC Bank and Mediobanca SpA are mandated lead arrangers.

Proceeds will be used to refinance existing debt, including the company’s €284 million of 10% senior secured notes due 2018 and $280 million of 9 5/8% senior secured notes due 2018.

Orion Engineered Carbons is a Frankfurt, Germany-based supplier of Carbon Black.

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