Ferro readies launch of $820 million in term loans for Tuesday

By Sara Rosenberg

New York, April 9 – Ferro Corp. is scheduled to hold a lender call at 1 p.m. ET on Tuesday to launch $820 million in term loans, according to a market source.

Deutsche Bank Securities Inc. and PNC Bank are the bookrunners on the deal.

The debt consists of a $355 million covenant-light term loan B-1 due February 2024, a $235 million covenant-light term loan B-2 due February 2024 and a $230 million covenant-light term loan B-3 due February 2024, the source said.

Price talk on the term loans is Libor plus 225 basis points with a 0% Libor floor, the source continued.

The term loan B-1 is being offered at par. Original issue discount talk on the term loan B-2 and term loan B-3 has not yet been announced.

The term loans have 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan B-1 down from Libor plus 250 bps with a 0.75% Libor floor, refinance the existing euro term loan and add cash to the balance sheet.

Commitments are due on April 19, the source added.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

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