AMG Critical Materials lifts add-on term loan to $100 million

By Sara Rosenberg

New York, April 5 – AMG Critical Materials NV upsized its fungible add-on senior secured term loan B due November 2028 (Ba2/BB-) to $100 million from $50 million, according to a market source.

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, and the original issue discount on the new debt remained at 99.03.

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 and existing term loan B are still getting 101 soft call protection for six months.

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

Commitments were scheduled to be due at 2 p.m. ET on Friday, accelerated from 5 p.m. ET on Tuesday, 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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