Platform Specialty trims term debt by $100 million with bond upsizing

By Sara Rosenberg

New York, Nov. 3 – Platform Specialty Products Corp. reduced its term loan offering by $100 million as its bond offering was increased to $500 million from $400 million, according to a market source.

At launch, the term debt consisted of a $1,145,000,000 term loan B due June 7, 2020 and a €300 million term loan B due June 7, 2020.

Talk on the U.S. and euro term loans is Libor plus 475 basis points with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC and Barclays are the lead banks on the deal.

Commitments are due on Friday.

Proceeds will be used to help fund the acquisition of Alent plc for 503 pence per share in cash. The transaction also includes a partial share alternative under which eligible Alent shareholders can elect to receive Platform common stock in lieu of part or all of the cash consideration to which they would otherwise be entitled under the transaction.

The transaction is valued at about $2.1 billion, and, including net debt, the total transaction value is around $2.3 billion.

Closing is expected in late 2015 or early 2016, subject to certain conditions, including Alent shareholder approval and regulatory approvals in certain jurisdictions.

Platform is a Miami-based specialty chemicals company. Alent is a U.K.-based supplier of specialty chemicals and engineered materials used primarily in electronics, automotive and industrial applications.

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