Messer Industries narrows talk for $2.85 billion equivalent of loans

New York, Sept. 25 – Messer Industries tightened price talk for its $2.85 billion equivalent of seven-year first-lien term loans (B1/BB-), according to a market source.

The company’s $2,225,000,000 dollar tranche is now talked at Libor plus 275 basis points to 300 bps, down from Libor plus 325 bps to 350 bps originally.

The 0% Libor floor and 99.5 original issue discount were left unchanged.

Messer’s $625 million equivalent euro-denominated tranche is now talked at Euribor plus 300 bps to 325 bps, down from Euribor plus 350 bps to 375 bps.

As with the dollar tranche, the 0% Euribor floor and 99.5 original issue discount are unchanged.

Both pieces have 101 soft call protection for six months and amortization of 1% per year, also the same as at launch.

In addition, Messer moved up the commitment deadline to 12 p.m. ET on Sept. 27 from Oct. 1 previously.

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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