Orion Engineered sets €331 million term loan issue price at par

By Sara Rosenberg

New York, April 27 – Orion Engineered Carbons finalized the issue price on its €331 million senior secured first-lien term loan (Ba3/BB) due July 25, 2024 at par, the tight end of the 99.75 to par talk, according to a market source.

Pricing on the euro term loan is still Euribor plus 225 basis points with a 0% floor.

The company is also getting a $288 million senior secured first-lien term loan (Ba3/BB) due July 25, 2024 priced in line with talk at Libor plus 200 bps with a 0% Libor floor and a par issue price.

Both term loans have 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs is the bookrunner, global coordinator and mandated lead arranger on the deal. Additional mandated lead arrangers and coordinators are Mediobanca International (Luxembourg) SA and ING Bank.

Proceeds will be used to reprice an existing U.S. term loan down from Libor plus 250 bps with a 0% Libor floor and an existing euro term loan down from Euribor plus 250 bps with a 0% floor.

Closing is expected on May 8, the source added.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

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