Momentive Performance Materials frees to trade; GlobalTranz discloses price talk

By Sara Rosenberg

New York, April 18 – Momentive Performance Materials Inc. (MPM Holdings Inc.) saw its U.S. term loan B surface in the secondary market on Thursday morning, and the debt was trading above its original issue discount.

Moving to the primary market, GlobalTranz Enterprises Inc. released price talk on its funded and delayed-draw first-lien term loans in connection with its bank meeting.

Momentive starts trading

Momentive Performance Materials’ $750 million five-year covenant-lite term loan B (B1/B+) broke for trading on Thursday, with levels quoted at par bid, 100˝ offered on the open and then it moved up the bid side to 100 1/8 bid, 100˝ offered, according to a market source.

Pricing on the U.S. term loan is Libor plus 325 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company is also getting a €78 million privately placed five-year covenant-lite term loan B (B1/B+) priced at Euribor plus 375 bps with a 0% floor and issued at a discount of 99.5.

During syndication, the U.S. term loan was downsized from $839 million as the euro term loan was added to the capital structure, pricing was reduced from talk in the range of Libor plus 375 bps to 400 bps, the original issue discount was tightened from 99 and the 50 bps MFN protection was extended to 24 months.

BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are the joint lead arrangers and joint physical bookrunners on the deal. BNP is the administrative agent.

Momentive being acquired

Momentive’s new bank debt will be used with cash to fund its purchase by SJL Partners LLC, KCC Corp. and Wonik QnC Corp. for $32.50 per share. The transaction is valued at about $3.1 billion, including the assumption of net debt, pension and OPEB liabilities.

Closing is expected late this month, subject to regulatory approvals and other customary conditions. The transaction is not subject to any financing contingency.

Momentive is a Waterford, N.Y.-based silicones and advanced materials company. KCC is a Seoul, South Korea-based chemicals manufacturer. Wonik is a Gumi, South Korea-based manufacturer and seller of quartz and ceramic wares used in the production of semiconductor wafers.

GlobalTranz guidance

Over on the new issue front, GlobalTranz held its bank meeting on Thursday morning and announced price talk for its $310 million seven-year first-lien term loan and $80 million delayed-draw seven-year first-lien term loan at Libor plus 475 bps to 500 bps with a 0% Libor floor and an original issue discount of 99, a market source remarked.

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

Commitments are due at noon ET on May 2.

J.P. Morgan Securities LLC is the lead bank on the $390 million of term loans (B2/B-) that will be used to help fund the buyout of the company by Providence Equity Partners LLC from Jordan Co. LP.

GlobalTranz is a Scottsdale, Ariz.-based technology-driven third-party logistics solutions provider.

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