Allnex readies launch of euro and U.S. term loan B for this week

By Sara Rosenberg

New York, May 16 – Allnex is scheduled to hold a bank meeting in London on Wednesday and a bank meeting at 11 a.m. ET in New York on Thursday to launch €760 million and $575 million of covenant-light first-lien seven-year term loan B debt, according to a market source.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Barclays and ING are the joint bookrunners on the deal.

The borrowers are Allnex Sarl and Allnex USA Inc.

Commitments are due on June 2, the source added.

Proceeds will be used with cash on the balance sheet to fund the acquisition of Nuplex Industries Ltd., a manufacturer of resins used in paints, coatings and structural materials, to refinance existing Allnex and Nuplex debt and to pay related fees and expenses.

Under the agreement, Allnex will acquire all the outstanding shares in Nuplex for NZ$5.43 cash per share by way of a scheme of arrangement.

The transaction is subject to some customary conditions including regulatory and shareholder approvals.

Allnex is a Brussels-based supplier of resins and additives for architectural, industrial, protective, automotive and special-purpose coatings and inks.

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