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Dupont Performance talks $2.3 billion U.S. loan at Libor plus 425 bps
By Sara Rosenberg
New York, Jan. 8 - Dupont Performance Coatings launched in New York on Tuesday its $2.3 billion seven-year covenant-light U.S. term loan with talk of Libor plus 425 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.
The loan has 101 soft call protection for one year, the source said.
The company's $200 million seven-year covenant-light euro-equivalent term loan is expected to price 25 bps wider than the U.S. term loan but have the same floor, offer price and call protection, the source added.
Also included in the company's $2.9 billion senior secured credit facility (B1/B+) is a $400 million five-year revolver that is talked at Libor plus 400 bps with a 100 bps upfront fee, a second source added.
A London bank meeting for the deal will take place on Wednesday.
Commitments are due at 5 p.m. ET on Jan. 17.
Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading the transaction.
Proceeds will be used to help fund Dupont Performance Coatings' buyout by the Carlyle Group from DuPont for $4.9 billion.
Other funds for the transaction will come from equity and $1.4 billion of bonds.
Net senior secured leverage is about 4 times, and net total leverage is roughly 5.6 times.
Closing is expected this quarter, subject to customary conditions and regulatory approvals.
DuPont Performance Coatings is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.
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