Caldic firms U.S. loan OID at 99.75, euro loan issue price at par

By Sara Rosenberg

New York, Feb. 4 – Caldic BV finalized the original issue discount on its €410 million equivalent U.S. seven-year covenant-lite term loan B (B2/B) at 99.75, the wide end of revised talk of 99.75 to 99.875 but tighter than initial talk in the range of 99 to 99.5, according to a market source.

Also, the issue price on the company’s €580 million euro seven-year covenant-lite term loan B (B2/B) firmed at par, the tight end of revised talk of 99.875 to par and tighter than initial talk of 99.5, the source said.

Pricing on the U.S. term loan is SOFR plus 400 basis points with a 25 bps step-down at 4.25x senior secured net leverage and a 0.5% floor, and pricing on the euro term loan is Euribor plus 400 bps with 25 bps step-downs at 4.25x and 3.75x senior secured net leverage and a 0% floor.

Both loans have 101 soft call protection for six months and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

The U.S. term loan has amortization of 1% per annum and the euro term loan has no amortization.

Previously in syndication, the total amount of term loan debt was upsized from €950 million equivalent and the breakdown of the U.S. and euro tranche sizes was set, pricing on the U.S. term loan firmed at the low end of the SOFR plus 400 bps to 425 bps talk, pricing on the euro term loan finalized at the low end of the Euribor plus 400 bps to 425 bps talk, and one 25 bps step-down based on senior secured net leverage was removed from both term loans.

Goldman Sachs is an active bookrunner on the U.S. term loan. Joint active bookrunners on the euro term loan are BNP Paribas Securities Corp., RBC Capital Markets and UBS Investment Bank. Joint passive bookrunners are Credit Suisse, Morgan Stanley Senior Funding Inc., Barclays, Jefferies LLC, ABN Amro, ING and KKR Capital Markets. RBC is the administrative agent.

Proceeds will be used to help fund the buyout of the company by Advent International from Goldman Sachs Asset Management, to refinance existing debt, for general corporate purposes and, due to the upsizing, to add cash to the balance sheet.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Caldic is a Netherlands-based provider of life sciences and specialty industrial solutions.

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