Royal Adhesives ups add-on term loan B to $40 million, pricing at par

By Sara Rosenberg

New York, March 19 – Royal Adhesives and Sealants upsized its fungible add-on senior secured term loan B (B) due July 31, 2018 to $40 million from $35 million and revised the offer price to par from 99¾, according to a market source.

Pricing on the add-on term loan is Libor plus 425 basis points with a 1.25% Libor floor.

The debt has a secured net leverage ratio and is callable at par.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Recommitments were due at 2 p.m. ET on Thursday, the source said.

Proceeds will be used to help fund the acquisition of Chemical Innovations Ltd., with the $5 million loan upsize decreasing balance sheet cash consideration, the source added.

Royal Adhesives is a South Bend, Ind.-based manufacturer and marketer of high performance adhesives, sealants, encapsulants and specialty polymers. Chemical Innovations is a U.K.-based manufacturer of high-performance bonding agents for industrial applications.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.