Atotech closes refinancing of senior secured credit facilities

By Taylor Fox

New York, March 18 – Atotech Ltd. closed on the refinancing of its senior secured credit facilities, according to a news release.

Five of Atotech’s indirect wholly owned subsidiaries, Alpha 3 BV, Alpha US BidCo, Inc., Atotech BV, Atotech Deutschland GmbH and Atotech Asia Pacific Ltd. successfully refinanced the company’s existing senior secured credit facilities and entered into a new credit agreement providing for a dollar-denominated senior secured term loan facility for $1.35 billion, a euro-denominated senior secured term loan facility for €200 million and a senior secured multi-currency revolving credit facility for revolving loans, letters of credit and ancillary facilities for up to $250 million.

The dollar-denominated loan and euro-term loan mature in March 2028, while the revolver matures in March 2026.

Proceeds from borrowings under the euro and dollar loans were used to fund the refinancing in full of the company’s outstanding existing term loan credit facilities, which were set to mature in January 2024, and to repay and replace its existing revolving credit agreement, which was to mature in January 2022.

Borrowings under the revolver were used to replace existing letters of credit under the company’s previous revolver.

Future borrowings under the revolving credit facility are expected to be used to fund working capital and for other general corporate purposes, including permitted acquisitions and other investments.

Borrowings under the dollar term loan bear interest at a variable rate of 250 basis points above Libor, with a minimum interest rate of 50 basis points.

Borrowings under the euro loan bear interest at a variable rate of 275 bps above Euribor, with a minimum interest rate of zero basis points and a potential leverage-based decrease in interest rate to 250 bps above Euribor.

The revolver bears interest at a variable rate of 200 bps above Libor and a commitment fee of 37.5 bps.

Goldman Sachs Bank USA is the administrative agent and collateral agent and Goldman Sachs Bank USA, JPMorgan Chase Bank, NA Barclays Bank Plc, Credit Suisse International, Credit Suisse Loan Funding LLC, Citibank, NA, London Branch, Unicredit Bank AG, Deutsche Bank Securities Inc., HSBC Trinkaus & Burkhardt AG, Standard Chartered Bank AG and TCG Senior Funding LLC are joint lead arrangers and joint bookrunners. Atotech is a Berlin-based specialty chemicals technology company

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