Standard Industries talks $2.5 billion loan at Libor plus 225-250 bps

By Sara Rosenberg

New York, July 26 – Standard Industries Inc. launched on Monday its $2.5 billion seven-year covenant-lite first-lien term loan B (Baa3/BBB-) with price talk of Libor plus 225 basis points to 250 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and JPMorgan Chase Bank are the bookrunners on the deal.

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

Proceeds will be used to fund a distribution to Standard Industries Holdings Inc. for the acquisition W.R. Grace & Co. for $70.00 per share in cash. The transaction is valued at about $7 billion.

Closing on the acquisition is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

W.R. Grace will operate as a stand-alone company within the portfolio of Standard Industries Holdings.

Standard Industries is a New York-based manufacturer of roofing products. W.R. Grace is a Columbia, Md.-based specialty chemical company.

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