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Lonza updates pricing on $1.13 billion, €725 million term loans
By Sara Rosenberg
New York, April 30 – Lonza Specialty Ingredients set pricing on its $1.13 billion (CHF $1.028 billion equivalent) seven-year term loan B at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and on its €725 million (CHF $806 million equivalent) seven-year term loan B at Euribor plus 400 bps, the high end of the Euribor plus 375 bps to 400 bps talk, according to a market source.
The U.S. term loan has a 25 bps step-down at 4.5x senior secured net leverage, and the euro term loan has 25 bps step-downs at 4.5x and 4.0x senior secured net leverage.
As before, the U.S. term loan has a 0.75% Libor floor and an original issue discount of 99, the euro term loan has a 0% floor and a discount of 99.5, and both term loans (B2/B) have 101 soft call protection for six months.
Credit Suisse is the physical bookrunner on the U.S. term loan, and Deutsche Bank, UBS, RBC Capital Markets, UniCredit, Credit Agricole and Societe Generale are joint bookrunners. UBS, Deutsche Bank and RBC are the physical bookrunners on the euro term loan, and Credit Suisse, UniCredit, Credit Agricole and Societe Generale are joint bookrunners. Natwest, Bank of Ireland and Commerzbank are mandated lead arrangers.
Recommitments were scheduled to be due at 10 a.m. ET on Friday, the source added.
Proceeds will be used with CHF 831 million equivalent of notes to help fund the buyout of the company by Bain Capital Private Equity and Cinven from Lonza AG for a total enterprise value of CHF 4.2 billion as well as to pay for related fees and expenses.
Closing is expected in the second half of the year, subject to customary conditions.
Lonza Specialty is a Basel, Switzerland-based provider of specialty chemicals.
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