CeramTec reveals talk on €648 million euro and U.S. term loan

By Sara Rosenberg

New York, July 16 - CeramTec GmbH came out with talk on its roughly €648 million equivalent euro and U.S. seven-year covenant-light term loan B as the company held its London bank meeting on Tuesday and is getting ready for its New York meeting on Wednesday, according to a market source.

The roughly €324 million euro term B tranche is talked at Euribor plus 425 basis points to 450 bps with a 1% floor and an original issue discount of 99, and the roughly €324 million U.S. equivalent term B tranche is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor and a discount of 99, the source said.

In addition to the term B debt, the company's €748 million credit facility includes a €100 million five-year revolver.

Deutsche Bank Securities Inc., RBC Capital Markets and UBS Securities LLC are the bookrunners on the deal.

Proceeds will be used to help fund the purchase of the company by Cinven from Rockwood Holdings Inc. for €1.49 billion.

Closing is expected in the third quarter, subject to regulatory approvals, including the E.U. Competition Clearance Authority.

CeramTec is a Plochingen, Germany-based producer of high-performance advanced ceramics materials and products.

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