AMG Critical Materials to launch $50 million term loan on Tuesday

By Sara Rosenberg

New York, April 1 – AMG Critical Materials NV is scheduled to hold a lender call at 11 a.m. ET on Tuesday to launch a fungible $50 million add-on senior secured term loan B due November 2028 (Ba2/BB-), according to a market source.

HSBC Securities (USA) Inc. and Citigroup Global Markets Inc. are the lead arrangers and bookrunners on the deal. HSBC is the agent.

Pricing on the add-on term loan is SOFR plus CSA plus 350 basis points with a 0.5% floor, in line with existing term loan B pricing.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The add-on term loan is talked with an original issue discount of 99.03, the source said.

The add-on and existing term loan B are getting 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on April 9, the source added.

Proceeds will be used for lithium resource development including via mergers and acquisitions, and for general corporate purposes.

AMG Critical, which has corporate offices in Amsterdam and Wayne, Pa., is a producer and developer of high value add/engineered energy storage materials such as lithium and vanadium serving various end markets.

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