Delrin sets talk on $700 million equivalent U.S. and euro loan

By Sara Rosenberg

New York, Oct. 2 – Delrin launched on Monday its $700 million equivalent U.S. and euro seven-year first-lien term loan (B2/B+) with price talk of SOFR/Euribor plus 450 basis points with an original issue discount of 98 to 98.5, according to a market source.

The U.S. tranche has a 0.5% floor and amortization of 1% per annum, the euro tranche has a 0% floor and no amortization, and both tranches have 101 soft call protection for six months, the source said.

The U.S. portion of the term loan will have a minimum size of $500 million.

Goldman Sachs Bank USA, RBC Capital Markets, BMO Capital Markets, UBS Investment Bank, KeyBanc Capital Markets and KKR Capital Markets are the arrangers on the deal.

Commitments are due at noon ET on Oct. 12, the source added.

Proceeds will be used to help fund the acquisition of an 80.1% ownership interest in the company by The Jordan Co. from DuPont in a transaction valuing the business at $1.8 billion.

At close, DuPont will receive pre-tax cash proceeds of about $1.25 billion, subject to customary transaction adjustments, a note receivable of $350 million, and will own a 19.9% non-controlling common equity interest in Delrin.

Closing is expected around year-end, subject to customary conditions and regulatory approval.

Delrin is a producer of acetal homopolymer, a high-end engineering thermoplastic.

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