Standard Industries updates price talk on $2.5 billion term loan

By Sara Rosenberg

New York, Aug. 4 – Standard Industries Inc. set pricing on its $2.5 billion seven-year covenant-lite first-lien term loan B (Baa3/BBB-) at Libor plus 250 basis points, the high end of the Libor plus 225 bps to 250 bps talk, according to a market source.

Also, the Libor floor on the term loan was changed to 0.5% from 0% and original issue discount talk was revised to a range of 98.75 to 99 from 99.5, the source said.

The term loan still has 101 soft call protection for six months.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and JPMorgan Chase Bank are the bookrunners on the deal.

Commitments continue to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will fund a distribution to Standard Industries Holdings Inc. that will be used for the acquisition of W.R. Grace & Co. for $70.00 per share in cash. The transaction is valued at about $7 billion.

Closing on the acquisition is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

W.R. Grace will operate as a stand-alone company within the portfolio of Standard Industries Holdings.

Standard Industries is a New York-based manufacturer of roofing products. W.R. Grace is a Columbia, Md.-based specialty chemical company.

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