Rhodia shifts funds between U.S. and euro term loans, updates pricing

By Sara Rosenberg

New York, April 20 – Rhodia Acetow downsized its U.S. dollar equivalent covenant-light term loan to €215 million from €367 million and upsized its euro covenant-light term loan to €350 million from €198 million, according to a market source.

Also, pricing on the U.S. term loan was increased to Libor plus 550 basis points from Libor plus 500 bps and price talk on the euro term loan was lifted to a range of Euribor plus 475 bps to 500 bps from Euribor plus 450 bps, the source said.

In addition, the original issue discount on the U.S term loan was revised to 98 from 99, and the maturities on both term loans were shortened to six years from seven years.

The euro term loan still has an original issue discount of 99, and both term loans still have a 1% floor.

The company’s €630 million-equivalent in credit facilities (B1/B+) also include a €65 million revolver with a springing leverage test.

Credit Suisse, Barclays, Deutsche Bank, Goldman Sachs, UBS, RBS and Bank of America Merrill Lynch are the bookrunners on the deal, with Credit Suisse the administrative agent.

Commitments are due at 10 a.m. ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by Blackstone.

Rhodia is a producer of cellulose acetate flakes and acetate tow.

© 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.