Emerald Performance to launch $830 million credit facility on Thursday

By Sara Rosenberg

New York, July 8 – Emerald Performance Materials LLC is scheduled to hold a conference call at 1:30 p.m. ET on Thursday to launch an $830 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $75 million revolver, a $525 million seven-year first-lien covenant-light term loan and a $230 million eight-year second-lien covenant-light term loan, the source said.

Price talk on the first-lien term loan is Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99½, and talk on the second-lien term loan is Libor plus 675 bps to 700 bps with a 1% Libor floor and a discount of 99, the source continued.

The first-lien term loan has 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.

Proceeds will be used to help fund the buyout of the company by American Securities LLC from Sun Capital Partners Inc.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Emerald is Cuyahoga Falls, Ohio-based manufacturer and marketer of specialty chemicals.

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