Element Materials sets talk on multi-currency first-lien term loans

By Sara Rosenberg

New York, May 23 – Element Materials Technology Ltd. released price talk on its $720 million seven-year first-lien term loan B (B1), £160 million seven-year first-lien term loan B (B1) and €204.2 million seven-year first-lien term loan B (B1), according to a market source.

The U.S. loan is talked at Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99.5, the pound loan is talked at Libor plus 450 bps with a 0% floor and a discount of 99.5, and the euro loan is talked at Euribor plus 350 bps with a 0% floor and a discount of 99.5 to 99.75, the source said.

All of the first-lien term loans have 101 soft call protection for six months.

Bank of America Merrill Lynch and HSBC Securities (USA) Inc. are the mandated lead arrangers on the deal.

A bank meeting for U.S. investors is scheduled to take place in New York on Wednesday, while the meeting for European investors took place on Tuesday.

Commitments are due on June 2, the source added.

Along with the first-lien term loans, the company plans on getting a $100 million revolver (B1), a $50 million capex/acquisition facility (B1) and a $230 million second-lien term loan.

Proceeds will be used to help fund the acquisition of Exova Group plc and to refinance debt.

Element Materials is a U.K.-based materials testing and product qualification testing provider. Exova is a testing, calibration and advisory services provider.

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