Lonza reveals price talk on $1.13 billion, €725 million term loans

By Sara Rosenberg

New York, April 20 – Lonza Specialty Ingredients disclosed price talk on its $1.13 billion (CHF $1.028 billion equivalent) seven-year term loan B and a €725 million (CHF $806 million equivalent) seven-year term loan B with its lender call on Tuesday, according to a market source.

Price talk on the U.S. term loan is Libor plus 400 basis points to 425 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the euro term loan is Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 99.5, the source said.

The term loans (B2/B) have 101 soft call protection for six months.

Credit Suisse is the physical bookrunner on the U.S. term loan, and Deutsche Bank, UBS, RBC Capital Markets, UniCredit, Credit Agricole and Societe Generale are joint bookrunners. UBS, Deutsche Bank and RBC are the physical bookrunners on the euro term loan, and Credit Suisse, UniCredit, Credit Agricole and Societe Generale are joint bookrunners. Natwest, Bank of Ireland and Commerzbank are mandated lead arrangers.

Commitments are due at noon ET on April 29.

Proceeds will be used with CHF 318 million equivalent of other pari passu secured debt and CHF 513 million equivalent of unsecured debt to help fund the buyout of the company by Bain Capital Private Equity and Cinven from Lonza AG for a total enterprise value of CHF 4.2 billion as well as to pay for related fees and expenses.

Closing is expected in the second half of the year, subject to customary conditions.

Lonza Specialty is a Basel, Switzerland-based provider of specialty chemicals.

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