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Arclin sets first- and second-lien term loan price talk with launch
By Sara Rosenberg
New York, Sept. 9 – Arclin Inc. announced price talk on its $675 million seven-year first-lien term loan (B2/B), $100 million seven-year delayed-draw first-lien term loan (B2/B) and $155 million eight-year second-lien term loan (Caa1/CCC+) with its lender call on Thursday, according to a market source.
The first-lien term loan debt is talked at Libor plus 400 basis points with a 0.5% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 700 bps with a 0.5% Libor floor and a discount of 99, the source said.
Call protection on the first-lien term loan is a 101 soft call for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.
The funded and delayed-draw first-lien term loans are being sold as a strip.
The delayed-draw term loan has a ticking fee of 1% per annum starting 90 days post close.
The company’s $1.03 billion of credit facilities also include a $100 million five-year revolver (B2/B).
RBC Capital Markets, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, KeyBank Capital Markets and ING are the lead arrangers on the deal.
Commitments are due at noon ET on Sept. 23, the source added.
Proceeds will be used to help fund the buyout of the company by The Jordan Co. LP from Lone Star Funds and repay in full an existing $690 million term loan B.
Closing is expected in the third quarter.
Arclin is a Roswell, Ga.-based manufacturer and formulator of surface overlays and specialty resins for the residential building products, industrial, furniture and non-residential construction markets.
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