Orica Chemicals sets talk on A$500 million U.S. equivalent term loan

By Sara Rosenberg

New York, Jan. 15 – Orica Chemicals (Chemstralia Pty Ltd.) launched on Thursday its A$500 million U.S. dollar equivalent term loan (B1) with price talk of Libor plus 500 basis points to 525 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by Blackstone from Orica Ltd. for A$750 million.

The sale includes the chemicals trading businesses in Australia, New Zealand and Latin America and the Australian Chloralkali manufacturing business. It also includes Bronson & Jacobs, which is a supplier to the food & nutrition and health & personal care industries in Australia, New Zealand and Asia.

Closing is expected this quarter, subject to Australian Foreign Investment Review Board and New Zealand Overseas Investment Office approval and other customary conditions.

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