Orion Engineered frees to trade; Terex, EP Minerals update deals; Styrolution pulls loan

By Sara Rosenberg

New York, Aug. 7 – Orion Engineered Carbons SA finalized pricing on its term loan at the wide end of talk, modified the original issue discount, extended the call protection and then freed up for trading late in the day on Thursday.

In other primary news, Terex Corp. firmed the offer price on its first-lien term debt at the low end of guidance, and EP Minerals LLC widened price talk on its first-lien term loan.

Also, Styrolution withdrew its term loan B (B2/B) from market, and Prestige Brands Inc. released size and price talk on its incremental term loan that launched during the session.

Orion updates pricing, breaks

Orion Engineered Carbons firmed pricing on its €665 million equivalent seven-year term loan at Libor/Euribor plus 400 basis points, the high end of the revised Libor/Euribor plus 375 bps to 400 bps talk and up from initial talk of Libor/Euribor plus 325 bps, moved the original issue discount to 99 from 99½ and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 1% floor.

The U.S. tranche of the term loan is sized at about $359 million and the remainder of the tranche is denominated in euros.

With final terms in place, the debt made its way into the secondary market on Thursday, with the U.S. loan quoted at 99 ¼ bid, par ¼ offered, the source said.

Orion getting revolver

In addition to the term loans, Orion’s €780 million credit facility includes a €115 million multicurrency five-year revolver.

Goldman Sachs Bank USA and UBS AG are the joint global coordinators and joint bookrunners on the deal, with Barclays, JPMorgan and Morgan Stanley as joint bookrunners, and DZ Bank AG, Fifth Third Bank, HSBC Bank and Mediobanca SpA as mandated lead arrangers.

Proceeds will be used to refinance existing debt, including the company’s €284 million of 10% senior secured notes due 2018 and $280 million of 9 5/8% senior secured notes due 2018.

Orion Engineered Carbons is a Frankfurt, Germany-based supplier of Carbon Black.

Terex firms OIDs

In more primary happenings, Terex set the original issue discount on its $230 million seven-year first-lien covenant-light term loan and its €200 million seven-year first-lien covenant-light term loan at 99¾, the tight end of the 99½ to 99¾ talk, a market source said.

The U.S. term loan is still priced at Libor plus 275 bps with a 0.75% Libor floor, the euro term loan is still priced at Euribor plus 325 bps with a 0.75%, and both still have 101 soft call protection for six months.

The company’s $1.1 billion credit facility (Ba1/BBB-) also includes a $600 million revolver.

Allocations are expected on Friday, the source added.

Credit Suisse Securities (USA) LLC, Commerz, Goldman Sachs Bank USA and RBS Securities Inc. are leading the deal that will be used to refinance existing debt.

Terex is a Westport, Conn.-based diversified equipment manufacturer.

EP Minerals tweaks deal

EP Minerals raised price talk on its $175 million first-lien term loan (B2/B+) to Libor plus 450 bps to 475 bps from Libor plus 425 bps, and kept the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

The company’s $275 million senior secured credit facility also includes a $25 million revolver (B2/B+), and a $75 million second-lien term loan (Caa2/CCC+) that is still talked at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

BMO Capital Markets and BNP Paribas Securities Corp. are leading the deal.

EP Minerals, a Reno, Nev.-based provider of diatomaceous earth and perlite filter aids, functional additives and absorbents, will used the new credit facility to refinance existing debt and fund a dividend.

Styrolution pulled

Styrolution removed its €1.6 billion equivalent U.S. and euro seven-year term loan B (B2/B) from the primary as a result of unfavorable market conditions, a market source said.

The U.S. tranche was talked at Libor plus 400 bps, after flexing earlier from Libor plus 350 bps, and the euro tranche was talked at Euribor plus 400 bps to 425 bps, after flexing from talk of Euribor plus 350 bps to 375 bps.

All of the term B debt had a 1% floor, an original issue discount of 99, which had been revised in late July from 99½, and 101 soft call protection for six months.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, HSBC and J.P. Morgan Securities LLC were leading the deal for the Frankfurt, Germany-based styrenics supplier, with Citigroup the left lead on the U.S. portion and Credit Suisse the left lead on the euro portion.

Proceeds were going to be used to help fund Ineos’ acquisition of BASF SE’s 50% share in Styrolution so that it would become a wholly owned, stand-alone company within Ineos, and to refinance existing debt.

Prestige holds call

Prestige Brands released details on its term loan that launched with a call on Thursday afternoon, including that the debt is a $720 million seven-year senior secured incremental term loan B (B1/BB) talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a source said.

Commitments are due at 5 p.m. ET on Aug. 14, the source continued.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will help fund the $750 million acquisition of Insight Pharmaceuticals Corp. from Swander Pace Capital and Ontario Teachers’ Pension Plan.

Closing is expected in the first half of this fiscal year, subject to customary closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products. Insight Pharmaceuticals is a Trevose, Pa.-based marketer and distributor of feminine care and other over-the-counter health care products.

Orbotech closes

In other news, Orbotech Ltd. completed its acquisition of SPTS Technologies Group Ltd., a U.K.-based manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry, from Bridgepoint and others, a news release said.

For the transaction, Orbotech got a new $300 million six-year covenant-light term loan B (B1/B+) priced at Libor plus 400 bps with a 1% Libor floor and sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, pricing on the loan was lifted from Libor plus 375 bps, the discount was revised from the 99½ area and the call protection was extended from six months.

J.P. Morgan Securities LLC led the deal.

Total leverage is around 2.9 times and net total leverage is around 1.7 times.

Orbotech is a Yavne, Israel-based provider of yield-enhancing and production services, primarily for manufacturers of printed circuit boards, flat panel displays and other electronic components.

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