Armacell to launch €65 million equivalent tack-on term loan on Tuesday

By Sara Rosenberg

New York, Feb. 13 – Armacell is set to hold a call at 10 a.m. ET on Tuesday to launch a €65 million equivalent tack-on first-lien covenant-light term loan due July 2, 2020, according to a market source.

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

The tack-on loan will include U.S. dollar and euro tranches, with the split still to be determined.

Pricing on the tack-on debt is Libor plus 450 basis points with a 1% Libor floor on the U.S. piece and Euribor plus 475 bps with a 1% floor on the euro piece, which matches existing U.S. and euro term loan pricing, the source said.

Original issue discount talk on the tack-on debt is still to be determined.

Proceeds will be used to fund two bolt-on acquisitions.

Armacell is a Luxembourg-based manufacturer of elastomeric foams.

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