Cypress Performance to launch $695 million credit facilities Wednesday

By Sara Rosenberg

New York, Oct. 17 – Cypress Performance Group is scheduled to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $695 million of credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies LLC, Deutsche Bank Securities Inc. and M&T Bank are the lead arrangers on the deal.

The facilities consist of an $85 million revolver, a $460 million seven-year covenant-light first-lien term loan and a $150 million eight-year covenant-light second-lien term loan, the source said.

Both term loans have a 1% Libor floor.

Included in the first-lien term loan is 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Nov. 1, the source added.

Proceeds will be used to fund the combination of Encapsys LLC and IPS Corp.

Cypress Performance is an advanced materials and diversified products provider.

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