Domtar Personal Care lifts term loan to $650 million, trims pricing

By Sara Rosenberg

New York, Feb. 19 – Domtar Personal Care upsized its seven-year covenant-lite first-lien term loan (B2/B) to $650 million from $620 million and reduced pricing to Libor plus 425 basis points from talk in the range of Libor plus 450 bps to 475 bps, according to a market source.

In addition, the original issue discount on the term loan was tightened to 99.5 from 99, the source said.

Other changes included setting MFN at 50 bps for 12 months and requiring quarterly lender calls.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., RBC Capital Markets and CIBC are the bookrunners on the deal.

Recommitments were scheduled to be due at 10:30 a.m. ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by American Industrial Partners from Domtar Corp. for $920 million.

Due to the term loan upsizing, the equity contribution for the transaction is being reduced.

Closing is expected this quarter, subject to receipt of regulatory approvals and other customary conditions.

Domtar Personal Care is a manufacturer and distributor of personal care products.

© 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.