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SI Group changes $1.48 billion first-lien term loan OID to 96
By Sara Rosenberg
New York, Aug. 21 – SI Group changed the original issue discount on its $1,475,000,000 seven-year first-lien term loan to 96 from revised talk in the range of 94 to 95 and initial talk of 99, according to a market source.
Pricing on the first-lien term loan is Libor plus 475 basis points with a 0% Libor floor.
The first-lien term loan has 101 soft call protection for one year.
Earlier in syndication, the first-lien term loan was upsized from $1,425,000,000 as plans for a $250 million eight-year second-lien term loan were cancelled, pricing was increased from Libor plus 400 bps and the call protection was extended from six months.
The second-lien term loan that was recently eliminated was talked at Libor plus 800 bps with a 0% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.
The company’s $1,725,000,000 of credit facilities (B2/B/BB-) also include a $250 million five-year revolver.
J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal, with JPMorgan the left lead on the first-lien loan. HSBC was the left lead on the second-lien loan.
Proceeds will be used to help fund the buyout of the company by SK Capital Partners from descendants of W. Howard Wright.
At the close of the transaction, SI Group will be combined with SK Capital’s current portfolio company Addivant, a Danbury, Conn.-based supplier of additives used to improve the production and performance properties of polymers, plastics and rubbers.
Closing is expected in the second half of this year.
SI Group is a Schenectady, N.Y.-based developer and manufacturer of performance additives and intermediates.
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