Orion Engineered firms €331 million term loan B at 99.875 OID

By Sara Rosenberg

New York, Oct. 24 – Orion Engineered Carbons finalized the original issue discount on its €331 million first-lien senior secured term loan B due July 25, 2024 at 99.875, the tight end of revised talk of 99.75 to 99.875, and tight of initial talk of just 99.75, according to a market source.

Pricing on the euro loan is Euribor plus 250 basis points with a 0% floor.

The company is also getting a $289 million first-lien senior secured term loan B due July 25, 2024 priced at Libor plus 250 bps with a 0% Libor floor and a par issue price.

Earlier in syndication, the spread on the euro term loan was lowered from Euribor plus 275 bps and the issue price on the U.S. term loan was changed from 99.75.

As before, both 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.

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.

Closing is expected during the week of Nov. 6, the source added.

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

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