Orica ups term loan to A$515 million, flexes to Libor plus 625 bps

By Sara Rosenberg

New York, Feb. 5 – Orica Chemicals (Chemstralia Pty Ltd.) upsized its U.S. dollar equivalent term loan (B1) to A$515 million from A$500 million and lifted pricing to Libor plus 625 basis points from talk of Libor plus 500 bps to 525 bps, according to a market source.

Additionally, the original issue discount on the term loan was changed to 95 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% Libor floor.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

J.P. Morgan Securities LLC, Barclays, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are the lead banks 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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