Prince finalizes $2.45 billion term loan at SOFR plus 425 bps

By Sara Rosenberg

New York, Feb. 3 – Prince International Corp. (PMHC II Inc.) firmed pricing on its $2.445 billion seven-year covenant-lite first-lien term loan at SOFR+CSA plus 425 basis points, the low end of the SOFR+CSA plus 425 bps to 450 bps talk, according to a market source.

The term loan still has a 0.5% floor, an original issue discount of 99.5, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Previously in syndication, the term loan was upsized from $1.945 billion as the company canceled plans for a $500 million senior secured notes offering.

The company’s $2.77 billion of credit facilities (B3/B-) also include a $325 million revolver.

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Jefferies LLC, KeyBanc Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and BofA Securities Inc. are the arrangers on the deal.

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

Proceeds will be used with $756 million in unsecured notes and $200 million of equity to fund the acquisition of Ferro Corp. and refinance existing debt.

Under the agreement, Ferro is being bought for $22.00 per share in cash in a transaction valued at about $2.1 billion, including the assumption of debt, net of cash.

In conjunction with the closing of the transaction, Prince, a portfolio company of American Securities LLC, Ferro and Chromaflo Technologies, another American Securities portfolio company, will combine into one company with sales of around $2 billion.

Closing is expected this quarter, subject to the approval of Ferro shareholders and the satisfaction of customary conditions, including applicable regulatory approvals.

Prince is a Houston-based developer, manufacturer and marketer of performance-critical specialty products for niche applications in the construction, electronics, consumer products, agriculture, automotive, oil & gas, industrial and other end markets. Ferro is a Mayfield Heights, Ohio-based supplier of technology-based functional coatings and color solutions. Chromaflo is an Ashtabula, Ohio-based provider of colorant technology solutions.

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