Myers sets Thursday launch for $685 million credit facility

By Sara Rosenberg

New York, July 16 - Myers Industries Inc. has scheduled a bank meeting for Thursday at 10 a.m. ET to launch its proposed $685 million senior secured credit facility (Ba3/B+), according to a market source.

The deal was originally supposed to launch on June 27, but was postponed to post-July 4 business.

Goldman Sachs is the lead bank on the deal.

The facility consists of a $535 million seven-year term loan and a $150 million six-year revolver.

According to filings with the Securities and Exchange Commission, both tranches are expected to carry pricing of Libor plus 225 basis points; however, official price talk on the deal is not yet out.

Proceeds will be used to help fund the buyout of Myers by GS Capital Partners in a transaction valued at $1.07 billion, including the assumption or repayment of about $276 million of debt. Shareholders will receive $22.50 per share in cash for each share of common stock they hold.

Other financing will come from $265 million of senior subordinated notes and an up to $285 million equity commitment, the SEC filings said.

The transaction is subject to certain closing conditions, including the approval of Myers' shareholders, regulatory approvals and the other customary conditions of closing. There is no financing condition.

Myers is an Akron, Ohio, manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.