Orion firms €665 million equivalent loan at Libor/Euribor plus 400 bps

By Sara Rosenberg

New York, Aug. 7 – Orion Engineered Carbons SA set pricing on its €665 million equivalent seven-year term loan at Libor/Euribor plus 400 basis points, the wide end of the revised Libor/Euribor plus 375 bps to 400 bps talk and up from initial talk of Libor/Euribor plus 325 bps, according to a market source.

Also, the original issue discount on the term loan debt widened to 99 from 99˝, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 1% floor.

Of the total term loan amount, about $359 million is in dollars and the remainder is in euros.

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

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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