Bayer Environmental tightens OIDs on first- and second-lien loans

By Sara Rosenberg

New York, Aug. 3 – Bayer Environmental Science (Discovery Purchaser Corp.) revised the original issue discount on its $1.346 billion seven-year first-lien term loan (B3/B-) to 92 from 90 and on its $300 million eight-year second-lien term loan (Caa2/CCC) to 87 from 85.5, according to a market source.

In addition, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source said.

Pricing on the first-lien term loan remained at SOFR plus 437.5 basis points with a 0.5% floor and pricing on the second-lien term loan remained at SOFR plus 700 bps with a 0.5% floor.

The second-lien term loan is still non-callable for one year, then at 102 in year two and 101 in year three.

The company’s $2.021 billion of credit facilities also include a $50 million ABL revolver and a $325 million revolver (B3/B-).

Credit Suisse Securities (USA) LLC, Barclays, BMO Capital Markets, HSBC Securities (USA) Inc., ING and BofA Securities Inc. are the arrangers on the deal, with Credit Suisse the left lead on the first-lien and Barclays the left lead on the second-lien.

Recommitments were scheduled to be due at 5:30 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday morning.

Proceeds will be used to help fund the buyout of the company by Cinven from Bayer AG for a total enterprise value of $2.6 billion.

Bayer Environmental is a Cary, N.C.-based provider of environmental solutions to diverse end markets.

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