Draslovka Holding widens pricing on $335 million term loan B

By Sara Rosenberg

New York, Nov. 10 – Draslovka Holding (Manchester Acquisition Sub LLC) increased pricing on its $335 million term loan B to SOFR+CSA plus 575 basis points from talk in the range of SOFR+CSA plus 525 bps to 550 bps, according to a market source.

Additionally, the original issue discount on the term loan was revised to 94 from 98, and call protection was changed to non-call two years, then at 50% of the yield in year three and 25% of the yield in year four from a 101 soft call for one year, the source said.

Furthermore, the maturity of the term loan was shortened to five years from seven years, a maintenance covenant was added, amortization was added, MFN was revised to 50 bps for life, and changes were made to, among other things, incremental debt, excess cash flow sweep and restricted payments.

The term loan still has a 0.75% SOFR+CSA floor, and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

JPMorgan Chase Bank is the lead on the deal and the administrative agent.

Commitments are due at 5 p.m. ET on Monday, the source added.

Proceeds will be used to help fund the acquisition of the Mining Solutions business of Chemours Co. for a total consideration of $520 million.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

Draslovka is a Czech-based specialty chemicals company focused on applications for gold, agriculture, electronics and other industries.

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