Cyanco shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, March 8 – Cyanco Intermediate 2 Corp. upsized its seven-year covenant-light first-lien term loan to $400 million from $380 million and downsized its eight-year covenant-light second-lien term loan to $80 million from $100 million, according to a market source.

Also, the original issue discount on the first-lien term loan was changed to 99.75 from 99.5, the source said.

In addition, the 50 bps MFN was set for life, the shorter maturity carve-out was eliminated, the asset sale step-downs were removed, the unswept asset sale proceeds building was eliminated and the restricted payment available amount was changed, the source continued.

Pricing on the first-lien term loan remained at Libor plus 350 basis points with a 0% Libor floor, and pricing on the second-lien term loan is still Libor plus 750 bps with a 0% Libor floor and a discount of 99.

As before, the first-lien term loan includes 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.

Deutsche Bank Securities Inc. is the bookrunner on the deal.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by Cerberus Capital Management LP from Oaktree Capital Management LP.

Cyanco is a Pearland, Texas-based supplier of sodium cyanide used for the extraction of gold and silver.

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