Rockwood Specialties postpones NYC launch until next week on scheduling conflicts

By Sara Rosenberg

New York, June 7 - The New York City bank meeting for the launch of Rockwood Specialties Group Inc.'s proposed $1.85 billion credit facility (B1/B+) has been pushed off until next week from Monday "due to scheduling conflicts," according to an informed source.

However, the launch of the deal in Europe in still set to take place via a bank meeting on Wednesday in London, the source added.

The facility consists of a $1.05 billion seven-year term loan B with an interest rate of Libor plus 275 basis points, a $250 million six-year revolver with an interest rate of Libor plus 250 basis points with a 50 basis points commitment fee, a $250 million six-year term loan A with an interest rate of Libor plus 250 basis points and a $300 million eight-year term loan C with an interest rate of Libor plus 300 basis points.

Credit Suisse First Boston, UBS and Goldman Sachs are the joint lead arrangers and joint bookrunners on the financing.

Proceeds, combined with proceeds from a bond offering and equity, will be used to help fund the acquisition of four chemical businesses of German-based Dynamit Nobel.

The equity for the transaction will be provided by Rockwood's internal resources, its existing majority shareholder Kohlberg Kravis Roberts & Co. LP and by CSFB Private Equity. The sponsors bid €2.25 billion for the four business units.

Closing of the transaction is planned for the third quarter of 2004 and is subject to approval by the supervisory board and annual general meeting of MG Technologies, parent company of Dynamit Nobel, as well as by the relevant antitrust authorities.

Rockwood is a Princeton, N.J., specialty chemicals and advanced materials company.

Reliant higher

Reliant Energy Inc. was up about half a point on no specific news in an otherwise relatively quiet secondary market with quotes of 99¾ bid, par ¼ offered on the term loan, according to a trader.

"People are buying into the story," another trader said in explanation of the strengthening.

Reliant is a Houston electricity and energy services company.

Polypore inactive amid news

Polypore International Inc.'s bank debt was not seen trading on Monday as investors spent the day looking into what kind of affect an initial public offering would have on their investment. However, the 101 level on Polypore International Inc.'s term loan debt "probably won't change" on the IPO news since the majority of those proceeds are earmarked for preferred stock and subordinated debt redemptions, according to a trader.

"There's a bunch of news out there so we really haven't traded it today," a different trader remarked.

The company anticipates generating up to $345 million in proceeds from the stock offering.

If the underwriters exercise their over-allotment option, the company may use a portion of the IPO proceeds to repay some term loan debt, according to an S-1 filed with the Securities and Exchange Commission on Monday.

The equity, bonds and term loan were used to fund the acquisition of Polypore by Warburg Pincus in May from The InterTech Group Inc. and GTCR Golder Rauner LLC.

Polypore is a North Charleston, S.C., developer, manufacturer, and marketer of specialized microporous filtration products.

Worldspan cuts revolver size

Worldspan Technologies Inc. has reduced the size of its proposed revolver, which will be undrawn at closing, to $40 million from $50 million, according to an S-1/A filed with the Securities and Exchange Commission on Monday.

The proposed term loan remained sized at $185 million.

The company is obtaining the credit facility in connection with its proposed initial public offering of common stock, which is expected to generate proceeds of about $604.4 million.

IPO proceeds along with the proposed term loan will be used to repay about $71 million of bank debt, repurchase about $107.4 million of 9 5/8% senior notes, prepay about $89.1 million under the 10% seller notes originally issued to Delta Air Lines and 12% seller notes originally issued to American, prepay all credit, or about $154.8 million, provided to Delta and Northwest Airlines pursuant to their FASA, terminate advisory fees payable to CVC Management LLC for about $5.3 million, prepay the approximately $3.5 million special dividend payable on class B convertible common stock and redeem shares of series A preferred stock, according to the filing.

Worldspan Technologies is an Atlanta provider of mission-critical transaction processing and information technology services to the travel industry.

© 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.