Envalior prices $1.9 billion of term loans at SOFR plus 550 bps

By Sara Rosenberg

New York, April 10 – Envalior (DSM Engineering Materials) priced its $1.411 billion seven-year term loan B-1 and $488 million seven-year term loan B-2 at SOFR plus 550 basis points with a 0.5% floor, according to a market source.

The U.S. term loan B-1 was sold at an original issue discount of 90, and both the U.S. B-1 and B-2 term loans have amortization of 1% per annum.

The company also priced a €1.15 billion seven-year term loan B-1 at Euribor plus 550 bps with a 0% floor and an original issue discount of 90, the source said.

All of the term loans (B2/B+/B+) have 101 soft call protection for one year.

The euro term loan has no amortization.

Barclays, BNP Paribas and UBS Investment Bank are the physical bookrunners on the deal. Commerzbank, ING, Rabobank, Standard Chartered and UniCredit are joint bookrunners. Wilmington Trust is the agent.

Proceeds will be used to help fund the buyout of DSM Engineering by Advent International and Lanxess from Netherlands-based Royal DSM, to refinance existing debt, for working capital and/or general corporate purposes and to pay related fees and expenses.

DSM Engineering will become part of a joint venture that is being formed by Advent and Lanxess. In addition, Lanxess is combining its High Performance Materials business unit with DSM Engineering.

Closing is expected in the first half of this year, subject to approval by authorities.

Envalior is a supplier of engineering and high-performance polymers.

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