Arxada launches CHF 621 million U.S. and euro term B at 99-99.5 OID

By Sara Rosenberg

New York, Jan. 11 – Arxada (Herens US Holdco Corp.) launched on Tuesday its fungible CHF 621 million equivalent U.S. and euro add-on term loan B due July 2028 (B) with original issue discount talk of 99 to 99.5, according to a market source.

Pricing on the add-on U.S. term loan is Libor plus 400 basis points with a 0.75% Libor floor, and pricing on the add-on euro term loan is Euribor plus 400 bps with a 0% floor, both in line with existing term loan pricing.

The term loan B is expected to be split about 50/50 between U.S. and euro tranches.

Deutsche Bank is the physical bookrunner on the U.S. term loan and a joint physical bookrunner on the euro term loan with UBS Investment Bank, RBC Capital Markets and Credit Suisse. U.S. joint bookrunners include UBS, Credit Suisse, RBC, Credit Agricole CIB, Intesa, MUFG, Societe Generale, Standard Chartered and UniCredit. Euro joint bookrunners include Credit Agricole, Intesa, MUFG, Societe Generale, Standard Chartered and UniCredit. Credit Suisse is the agent.

Commitments are due at noon ET on Jan. 19.

Proceeds will be used to help fund the already completed acquisitions of Troy Corp. and Enviro Tech Chemical Services and pay acquisition related fees and expenses.

Arxada, formerly known as Lonza Specialty Ingredients, is a Basel, Switzerland-based specialty chemicals company. Troy is a manufacturer of microbial control solutions and performance additives. Enviro Tech is a manufacturer of proprietary and high-efficacy antimicrobial and biocidal products.

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