Rockwood Specialties to launch $350 million term loan A on Wednesday

By Sara Rosenberg

New York, Jan. 27 - Rockwood Specialties Group Inc. is scheduled to hold a bank meeting on Wednesday to launch a proposed $350 million five-year term loan A, according to a market source.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal.

Price talk on the term loan A is Libor plus 225 basis points with no Libor floor, the source said.

Proceeds will be used to help fund the redemption of senior subordinated notes, consisting of €250.1 million of 7.625% euro-denominated notes and $200 million of 7.5% dollar-denominated notes. The notes are due on Nov. 15, 2014.

Other funds for the buyback will come from cash on hand.

"This new term loan and the repayment of all outstanding notes are consistent with our stated objective of reducing our debt levels and annual interest expense," Seifi Ghasemi, chairman and chief executive officer, said in a news release.

The company's existing credit facility, which includes a revolver and a term loan B, will remain in place.

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

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