Atotech cuts spread on $1.4 billion in term debt to Libor plus 300 bps

By Sara Rosenberg

New York, Jan. 24 – Atotech BV lowered pricing on its $1.4 billion in senior secured covenant-light term loan debt to Libor plus 300 basis points from Libor plus 350 bps, according to a market source.

Also, the original issue discount was changed to 99.75 from 99, the source said.

The term debt, split between a $900 million term loan B-1 and a $500 million term loan B-2 to be allocated to Bank of China, still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $1.65 billion credit facility (B+) also includes a $250 million revolver.

Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Nomura, RBC Capital Markets LLC and Bank of China are the bookrunners on the deal.

Recommitments were due at 12:30 p.m. ET on Tuesday, the source added.

Proceeds will be used with equity to fund the buyout of the company by the Carlyle Group from Total for $3.2 billion.

Net secured leverage is 4.4 times, and net total leverage is 5.8 times.

Closing is subject to approval by the relevant antitrust authorities.

Atotech is a manufacturer of specialty plating chemicals and equipment.

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