Houghton International sets Tuesday launch for $365 million facility

By Sara Rosenberg

New York, Jan. 6 - Houghton International Inc. has scheduled a bank meeting for Tuesday to launch its proposed $365 million senior secured credit facility (B+), according to a market source.

Deutsche Bank, Bank of Ireland and GE Capital are the joint lead arrangers on the deal, with Deutsche the left lead.

The facility consists of a $50 million revolver and a $315 million term loan B. Price talk is not yet available.

Proceeds will be used to refinance existing senior secured debt and to fund the acquisition of Royal Dutch Shell plc's Metalworking and Metal Rolling Oils business, a specialty fluid manufacturer in the metal working and metal rolling fluids marketplace.

The transaction is anticipated to close early this year, subject to regulatory approval.

Without synergy adjustments, senior leverage will be around the mid-2 times and total leverage will be in the high-3 times.

Houghton is a Valley Forge, Pa.-based developer and producer of specialty chemicals, oils and lubricants for the metalworking, automotive, steel and aluminum industries.

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