Arclin shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, Sept. 21 – Arclin Inc. upsized its seven-year first-lien term loan to $685 million from $675 million and downsized its eight-year second-lien term loan to $145 million from $155 million, according to a market source.

Also, pricing on the first-lien term loan and $100 million seven-year delayed-draw first-lien term loan was reduced to Libor plus 375 basis points from Libor plus 400 bps and the original issue discount was tightened to 99.5 from 99, the source said.

The funded and delayed-draw first-lien term loans, which are being sold as a strip, still have a 0.5% Libor floor and 101 soft call for six months.

The delayed-draw term loan has a ticking fee of 1% per annum starting 90 days post close.

Pricing on the second-lien term loan remained at Libor plus 700 bps with a 0.5% Libor floor and a discount of 99.

The second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $1.03 billion of credit facilities also include a $100 million five-year revolver.

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.

Recommitments are due at 10 a.m. ET on Wednesday, the source added.

Allocations are expected on Wednesday.

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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