CeramTec lowers pricing on €647.5 million in U.S. and euro term Bs

By Sara Rosenberg

New York, July 26 - CeramTec GmbH cut pricing on its U.S. equivalent term loan B to Libor plus 350 basis points from talk of Libor plus 400 bps to 425 bps and on its euro term loan B to Euribor plus 400 bps from talk of Euribor plus 425 bps to 450 bps, according to a market source.

Also, the original issue discounts on the total €647.5 million equivalent U.S./euro seven-year covenant-light term loan Bs were tightened to 99½ from 99, the source said.

The B loans still have a 1% floor and 101 soft call protection for six months.

With the pricing changes, the MFN sunset was extended to 24 months from 12 months, the source said.

In addition to the term B debt, the company's €747.5 million credit facility (Ba3/B) includes a €100 million five-year revolver.

Recommitments were due at the close of business on Friday.

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.

Other funds for the transaction will come from €306.7 million of eight-year senior notes that priced on Thursday at par to yield 8¼%.

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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