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Cypress Performance reworks first-, second-lien loan sizes, pricing
By Sara Rosenberg
New York, Oct. 26 – Cypress Performance Group upsized its seven-year covenant-light first-lien term loan to $475 million from $460 million and downsized its eight-year covenant-light second-lien term loan to $135 million from $150 million, according to a market source.
Also, pricing on the first-lien term loan was lowered to Libor plus 325 basis points from talk in the range of Libor plus 375 bps to 400 bps and pricing on the second-lien term loan was cut to Libor plus 750 bps from talk in the range of Libor plus 800 bps to 825 bps, the source said.
Furthermore, a step-down was added to the first-lien term loan to Libor plus 300 bps at corporate family ratings of B1/B+.
And, the original issue discount on the first-lien term loan was tightened to 99.75 from 99.5, while the second-lien term loan discount was revised to 99.5 from 99, the source continued.
The first-lien term loan still has a 1% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.
The company’s $695 million of credit facilities also provide for an $85 million revolver.
Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies LLC, Deutsche Bank Securities Inc. and M&T Bank are the lead arrangers on the deal.
Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.
Proceeds will be used to fund the combination of Encapsys LLC and IPS Corp.
Cypress Performance is an advanced materials and diversified products provider.
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