Messer talks U.S. and euro term loans at Libor/Euribor plus 225 bps

By Sara Rosenberg

New York, Feb. 13 – Messer Industries launched on Thursday its $2.206 billion term loan B due March 2026 and its €540 million term loan B due March 2026 with price talk of Libor/Euribor plus 225 basis points with a 0% floor, according to a market source.

The U.S. term loan is talked with an original issue discount of 99.875, and the euro term loan is talked with a discount in the range of 99.875 to par, the source said.

The euro term loan is talked with a pricing step-up to Euribor plus 250 bps at more than 4.5x net leverage.

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

Goldman Sachs Bank USA, Citigroup Global Markets Inc., UBS Investment Bank, BNP Paribas Securities Corp., ING, UniCredit, Bayern LB, Deutsche Bank Securities Inc., Helaba and Mizuho are the lead arrangers on the deal. Goldman is the left lead on the U.S. loan, and Citigroup and UBS are the joint active leads on the euro loan.

Commitments for the U.S. term loan are due at noon ET on Feb. 21, and commitments for the euro term loan are due at 9 a.m. ET on Feb. 21, the source added.

Proceeds will be used to reprice an existing U.S. term loan down from Libor plus 250 bps and an existing euro term loan down from Euribor plus 275 bps with a step to Euribor plus 250 bps.

Messer Industries is a producer and refiner of industrial gases for customers across several industries.

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