Lummus cuts spread on $1.05 billion term loan to Libor plus 400 bps

By Sara Rosenberg

New York, June 16 – Lummus Technology (Illuminate Buyer LLC) reduced pricing on its $1.05 billion seven-year covenant-lite first-lien term loan to Libor plus 400 basis points from talk in the range of Libor plus 425 bps to 450 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 97.5 from 97, the source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $1.375 billion of credit facilities (B1/B+) 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.

Recommitments were scheduled to be due at 11 a.m. ET on Tuesday, the source added.

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.

Prior to its lender call on June 9, the company upsized the term loan from $600 million and scrapped plans for a secured notes offering that was being considered but never launched. However, the company is still issuing $460 million of senior notes.

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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