Valtris shifts to one $405 million term loan, modifies pricing

By Sara Rosenberg

New York, July 24 – Valtris Specialty Chemicals (Polymer Additives Inc.) upsized its seven-year covenant-light first-lien term loan to $405 million from $300 million and eliminated plans for a $105 million eight-year covenant-light second-lien term loan, according to a market source.

Also, pricing on the term loan was increased to Libor plus 600 basis points from talk in the range of Libor plus 450 bps to 475 bps and the original issue discount was revised to 98 from 99, the source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The eliminated second-lien term loan had been talked at Libor plus 850 bps to 875 bps with a 0% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two.

The deal had originally come to market in June as a $300 million first-lien term loan talked at Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.5, and a $105 million second-lien term loan was talked at Libor plus 800 bps with a 0% Libor floor and a discount of 99. It was then relaunched on July 13 with revised price talk.

Deutsche Bank Securities Inc. and RBC Capital Markets are the bookrunners on the deal.

Recommitments are due at noon ET on Thursday, the source added.

Proceeds will be used to fund the potential purchase of some assets from Ineos, subject to regulatory approvals, and to refinance existing debt.

Valtris, an H.I.G. Capital portfolio company, is an Independence, Ohio-based manufacturer of specialty chemicals producing a diverse set of polymer modifiers, lubricants and stabilizers primarily used as additives in the production of plastics.

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