AkzoNobel Specialty Chemicals firms U.S. and euro term loan B pricing

By Sara Rosenberg

New York, Sept. 20 – AkzoNobel Specialty Chemicals finalized pricing on its €3.71 billion equivalent U.S. dollar seven-year covenant-light term loan B at Libor plus 325 basis points with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The U.S. term loan was recently upsized from €3,325,000,000 and pricing was revised from initial talk of Libor plus 400 bps to 425 bps with a 0% Libor floor and a discount of 99 to 99.5.

Also, pricing on the company’s €1.79 billion seven-year covenant-light term loan B firmed at Euribor plus 375 bps with a 0% floor and a par issue price, the source said.

Pricing on the euro term loan was changed during syndication from initial talk of Euribor plus 425 bps with a 0% floor and a discount of 99 to 99.5.

Both term loans have 101 soft call protection for six months.

The company’s €6.25 billion equivalent of credit facilities also include a €750 million equivalent U.S. dollar six-year revolver.

J.P. Morgan Securities LLC, Barclays and HSBC are the joint global coordinators on the loans. Credit Suisse, Deutsche Bank, Morgan Stanley, RBC, Citigroup, Nomura, UBS, BNP Paribas, Credit Agricole, Mizuho, MUFG, RBS, Societe Generale and Bank of China are the bookrunners. ABN Amro, Commerzbank, Rabobank, SEB, Bank of Ireland, Standard Chartered, ING and AIB are the mandated lead arrangers. JPMorgan is the administrative agent.

Proceeds will be used to help fund the buyout of AkzoNobel Specialty Chemicals by the Carlyle Group and GIC from AkzoNobel for an enterprise value of €10.1 billion.

Other funds for the transaction will come from $605 million and €485 million in notes. The total bond offering was downsized by €385 million with the recent U.S. term loan upsizing.

Closing is expected before year-end, subject to regulatory approvals and other customary conditions.

AkzoNobel Specialty is a specialty chemicals company.

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