Albaugh prices $750 million term loan B at SOFR plus 375 bps at 99

By Paul A. Harris

Portland, Ore., Feb. 18 – Albaugh LLC priced its $750 million seven-year term loan B (Ba3/BB) with a 375 basis points spread to SOFR atop a 1% floor at OID 99, according to a market source.

The spread came at the tight end of the 375 bps to 400 bps spread talk. The issue price came on top of price talk.

HSBC Securities (USA) Inc., JPMorgan Chase Bank, Rabobank, Santander, Truist and BofA Securities Inc. are the joint lead arrangers on the deal. HSBC is the administrative agent.

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

The spread is subject to a 25 bps step-down at 1.75-times net secured leverage.

Proceeds will be used to refinance an existing credit facility and fund the acquisition of Rotam Global AgroSciences Ltd., a Hong Kong-based provider of crop protection solutions, for NT$26.23 per share, or about $197.5 million net of cash and debt.

Albaugh is an Ankeny, Iowa-based producer of off-patent agrochemical products.

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