Armacell to launch U.S. and euro term loans on Friday morning

By Sara Rosenberg

New York, June 5 - Armacell is scheduled to hold a bank meeting at 10 a.m. ET in New York on Friday to launch new U.S. and euro term loans, according to a market source.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and HSBC Securities (USA) Inc. are the lead banks on the deal.

The facility consists of a $210 million seven-year first-lien covenant-light term loan, a €100 million seven-year first-lien covenant-light term loan and an $85 million 71/2-year second-lien covenant-light term loan, the source said.

The U.S. first-lien loan is talked at Libor plus 350 basis points to 375 bps and the euro first-lien loan is talked at Euribor plus 375 bps to 400 bps, with both having a 1% floor, an original issue discount of 99½ and 101 repricing protection for one year.

The second-lien loan is talked at Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99, the source continued.

Included in the second-lien loan is call protection of 102 in year one and 101 in year two.

In addition to the term loans, the company is getting a $65 million revolver.

Commitments are due on June 20, the source added.

Proceeds will be used to help fund the buyout of the company by Charterhouse Capital Partners.

Armacell is a manufacturer of engineered foams.

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