| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for GEON Performance Solutions LLC > News item |
GEON lifts term loan to $630 million, flexes to Libor plus 475 bps
By Sara Rosenberg
New York, Aug. 9 – GEON Performance Solutions LLC upsized its seven-year term loan B to $630 million from $600 million and lowered pricing to Libor plus 475 basis points from Libor plus 500 bps, according to a market source.
Also, the company added a 25 bps pricing step-down at 3.75x first-lien net leverage to the term loan and tightened the original issue discount to 99.25 from 99, the source said.
In addition, the MFN sunset was extended to 24 months from 12 months, the MFN carveout was reduced to 50% EBITDA from 100% and the acquisition carveout was removed.
Furthermore, quarterly lender calls were added, the inside maturity basket was removed, the free-and-clear basket was reduced to 75% EBITDA from 100%, and the “no worse than” debt incurrence for first-lien, second-lien and unsecured was eliminated, the source continued.
The term loan still has a 0.75% Libor floor and 101 soft call protection for one year.
The company’s now $690 million of credit facilities (B2/B+), up from $660 million, also include a $60 million five-year revolver.
HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc. and KeyBanc Capital Markets are the joint lead arrangers on the deal.
Recommitments are due at 10 a.m. ET on Tuesday, the source added.
Allocations are expected on Tuesday.
Proceeds will be used with cash on hand to refinance existing debt and fund a one-time special distribution to shareholders, the amount of which was increased to $190 million from $160 million with the term loan upsizing.
Closing is expected late in the week of Aug. 16.
Pro forma net leverage is 4.3x, up from 4.1x initially.
GEON Performance is a Westlake, Ohio-based provider of plastic compounded solutions.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.