Armacell launches U.S. and euro tack-on term loans at discount of 99½

By Sara Rosenberg

New York, Feb. 17 – Armacell launched on Tuesday its $36 million and €33 million tack-on first-lien covenant-light term loan debt due July 2, 2020 with original issue discount talk of 99½, according to a market source.

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 tack-on loans have 101 soft call protection for six months, the source said.

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

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

Commitments are due at 5 p.m. ET on Feb. 24, the source added.

Armacell is a Luxembourg-based manufacturer of elastomeric foams.

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