Arconic talks $1 billion seven-year term loan B at SOFR plus 475 bps, OID 97-97.5

By Paul A. Harris

Portland, Ore., July 17 – Arconic Corp. plans to kick off a $1 billion seven-year term loan B on a lender call set for 11 a.m. ET on Tuesday, according to market sources.

The borrowing entity is Arsenal AIC Parent LLC.

The facility is talked at SOFR plus 475 basis points with an original issue discount of 97 to 97.5.

The term loan features six months of soft call protection at 101.

There is a ticking fee structure: 0% from 0 to 30 days, 50% of the margin for days 31 to 60, 100% of the margin for days 61 to 90, and 100% of the margin plus three-month adjusted term SOFR from 91 days to closing.

Commitments are due at 5 p.m. ET on Aug. 1.

JPMorgan, Wells Fargo, Apollo, BMO, Mizuho, TD, Citigroup, Citizens, Fifth Third and Truist are the arrangers.

Proceeds plus $900 million of other senior secured debt, $725 million of other unsecured debt and $2.3 billion of common equity will be used to fund the acquisition of Arconic, a Pittsburgh-based provider of aluminum architectural products, by Apollo Global Management and Irenic.

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