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Lonza updates sizes and pricing on U.S. and euro term loans
By Sara Rosenberg
New York, April 30 – Lonza Specialty Ingredients downsized its U.S. seven-year term loan B to $1.095 billion from $1.13 billion and upsized its euro seven-year term loan B to €750 million from €725 million, according to a market source.
Also, pricing on the U.S. term loan firmed at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and pricing on the euro term loan was set at Euribor plus 400 bps, the high end of the Euribor plus 375 bps to 400 bps talk.
The U.S. term loan has a 25 bps step-down at 4.5x senior secured net leverage, and the euro term loan has 25 bps step-downs at 4.5x and 4.0x senior secured net leverage.
As before, the U.S. term loan has a 0.75% Libor floor and an original issue discount of 99, the euro term loan has a 0% floor and a discount of 99.5, and both 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.
Proceeds will be used with $350 million of senior secured notes and €460 million of senior notes 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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