Lummus talks upsized $1.05 billion loan at Libor plus 425-450 bps

By Sara Rosenberg

New York, June 9 – Lummus Technology (Illuminate Buyer LLC) lifted its seven-year covenant-lite first-lien term loan size to $1.05 billion from $600 million ahead of its 10 a.m. ET lender call on Tuesday and released price talk at Libor plus 425 basis points to 450 bps with a 0% Libor floor and an original issue discount of 97, according to a market source.

The term loan has 101 soft call protection for six months.

Upsizing the term loan was a result of scrapping plans for a secured notes offering that was being considered but never launched, the source said.

The company’s now $1.375 billion of credit facilities (B1/B+), up from $925 million, also include a $175 million revolver and a $150 million letter-of-credit facility.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., RBC Capital Markets, Societe Generale, UBS Investment Bank and SunTrust Robinson Humphrey Inc. are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on June 18.

Proceeds will be used to help fund the acquisition of the company by the Chatterjee Group and Rhone Capital from Houston-based McDermott International Inc. for $2.725 billion.

Lummus is a developer and licensor of mission essential technologies for the refining and petrochemical industries and a supplier of catalysts and proprietary equipment.

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