Unifrax lifts euro term B to €95 million, cuts U.S. to $385 million

By Sara Rosenberg

New York, Nov. 17 - Unifrax I LLC upsized its euro term loan B to €95 million from €75 million and downsized its U.S. term loan B to $385 million from $390 million, according to a market source.

Pricing on the euro term loan B remained at Euribor plus 600 basis points with a 1.5% floor and a discount of 98 and on the U.S. term loan B at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 98.

On Wednesday, the U.S. term loan B pricing tightened from Libor plus 600 bps with a discount of 97, and the euro tranche was carved out of what was a $490 million term loan B.

As before, the entire term loan B includes 101 soft call protection for one year.

The company's roughly $560 million credit facility (B2/B+), up from $540 million, still provides for a $50 million five-year revolver. Pricing on this tranche is Libor plus 525 bps, after flexing on Wednesday from Libor plus 575 bps.

The revolver unused fee is 75 bps initially. It can drop to 50 bps at 3.5 times leverage or less.

Recommitments were due from lenders on Thursday, and allocations are expected on Friday.

Goldman Sachs & Co., Wells Fargo Securities LLC, GE Capital Markets and KeyBanc Capital Markets LLC are the lead banks on the deal that will be used to help fund the buyout of the company by American Securities.

As a result of the upsizing to the overall term loan B amount, the equity component of the buyout was reduced.

Unifrax is a Niagara Falls, N.Y.-based supplier of high-temperature insulation products.

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