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Versum trims pricing on $575 million term loan B to Libor plus 250 bps
By Sara Rosenberg
New York, Sept. 20 – Versum Materials LLC lowered pricing on its $575 million seven-year covenant-light term loan B to Libor plus 250 basis points, from revised talk of Libor plus 275 bps and initial talk of Libor plus 300 bps to 325 bps, according to a market source.
Also, the 25 bps step-down in pricing when total net leverage is less than 2.5 times was removed, the source said.
The term loan B still has a 0.75% Libor floor, an original issue discount of 99.5, 101 soft call protection for one year, and amortization of 1% per annum.
Mandatory prepayments are from 100% of asset sales, subject to reinvestment rights, 100% of debt issuance, subject to permitted debt, and 50% of excess cash flow, with leverage-based step-downs.
Commitments were due at 5 p.m. ET on Tuesday, the source added.
Allocations are expected on Wednesday.
The company’s $775 million senior secured credit facility (Ba1/BB+) also provides for a $200 million five-year revolver.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are the joint lead arrangers on the deal. Co-managers include Bank of America Merrill Lynch, Mizuho and MUFG.
The new bank debt is being done in connection with the company’s spin-off from Air Products and Chemicals Inc. and will be used to help fund a distribution to Air Products.
Other funds for the transaction will come from $425 million in senior unsecured notes.
Versum Materials is a Tempe, Ariz.-based producer of critical materials, including high purity process materials, cleaners and etchants, slurries, organosilanes and organometallics and equipment for the semiconductor and display industries.
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