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Cabot gets $200 million five-year revolver at Libor plus 150 bps
By Susanna Moon
Chicago, Nov. 16 – Cabot Microelectronics Corp. gave details of its $200 million five-year revolving credit facility, which was part of its $1,265,000,000 senior secured credit facilities in connection with its recent buyout of KMG Chemicals Inc.
Interest on the revolver is initially Libor plus 150 basis points, with the spread ranging from Libor plus 100 bps to 175 bps based on leverage, according to an 8-K filing with the Securities and Exchange Commission.
The revolver requires that the company maintain a maximum first lien secured net leverage ratio of 4 times as of the last day of each fiscal quarter if any revolving loans are outstanding, beginning with the first full fiscal quarter after closing.
The commitment fee is initially 25 bps and ranges from 17.5 bps to 30 bps.
The revolver remains undrawn.
As reported Nov. 1, the facility also included a $1,065,000,000 seven-year term loan B, which firmed at Libor plus 225 basis points, with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.
J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Goldman Sachs Bank USA were the leads on the deal.
Proceeds of the term loan were used to help fund the acquisition of KMG Chemicals Inc. and refinance KMG’s existing debt.
Cabot is an Aurora, Ill.-based supplier of chemical mechanical planarization polishing slurries and CMP pads to the semiconductor industry. KMG is a Fort Worth-based producer and distributor of specialty chemicals and performance materials for the semiconductor, industrial wood preservation, and pipeline and energy markets.
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