CeramTec cuts pricing again on €647.5 million in U.S. and euro term Bs

By Sara Rosenberg

New York, July 30 - CeramTec GmbH reduced pricing on its $472.5 million term loan B to Libor plus 325 basis points from revised talk of Libor plus 350 bps and initial talk of Libor plus 400 bps to 425 bps, according to a market source.

Also, pricing on the €291.3 million term loan B was trimmed to Euribor plus 375 bps from revised talk of Euribor plus 400 bps and initial talk of Euribor plus 425 bps to 450 bps, the source said.

As before, the total €647.5 million equivalent U.S./euro seven-year covenant-light term loan Bs have a 1% floor, an original issue discount of 99½ and 101 soft call protection for six months.

The discount on the B loans was revised last week from 99.

In addition to the term B debt, the company's €747.5 million credit facility (Ba3/B) includes a €100 million five-year revolver.

Deutsche Bank Securities Inc., RBC Capital Markets and UBS Securities LLC are the bookrunners on the deal.

Proceeds will be used to help fund the purchase of the company by Cinven from Rockwood Holdings Inc. for €1.49 billion.

Other funds for the transaction will come from €306.7 million of eight-year senior notes that priced last week at par to yield 8¼%.

Closing is expected in the third quarter, subject to regulatory approvals, including the E.U. Competition Clearance Authority.

CeramTec is a Plochingen, Germany-based producer of high-performance advanced ceramics materials and products.

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