Messer Industries sets talk for $2.85 billion equivalent of loans

New York, Sept. 19 – Messer Industries set price talk for its $2.85 billion equivalent of seven-year first-lien term loans (B1/BB-) following launch of the transaction at a bank meeting in New York on Monday, according to a market source.

The company is offering a $2,225,000,000 dollar tranche at Libor plus 325 basis points to 350 bps with a 0% Libor floor and an original issue discount of 99.5.

The company is also offering a $625 million equivalent euro-denominated tranche at Euribor plus 350 bps to 375 bps with a 0% Euribor floor and an original issue discount of 99.5.

Both pieces have 101 soft call protection for six months and amortization of 1% per year.

Commitments are due by Oct. 1.

Goldman Sachs Bank USA is the lead bookrunner on the U.S. tranche, and UBS Investment Bank and Citigroup Global Markets Inc. are the lead bookrunners on the euro tranche. Managing lead arrangers are Goldman Sachs, UBS, Citigroup, ING, UniCredit, BNP Paribas, Deutsche Bank, Mizuho, Bayern LB and Helaba.

Proceeds will be used to fund the acquisition by Messer Group and CVC Capital Partners of Linde AG’s gases business in North and South America for $3.3 billion.

Messer Industries is a new company formed by Linde North America’s gas assets and Messer Group’s Western European assets. The company will be owned 58% by Messer Group and 42% by CVC.

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