Chromaflo adjusts first- and second-lien loan sizes, lowers price talk

By Sara Rosenberg

New York, Nov. 18 - Chromaflo Technologies upsized its six-year covenant-light first-lien term loan B (B2) to $330 million from $310 million and downsized its 61/2-year covenant-light second-lien term loan (Caa2) to $115 million from $130 million, according to a market source.

Also, price talk on the first-lien term loan was reduced to Libor plus 350 basis points to 375 bps from Libor plus 400 bps, and talk on the second-lien term loan was trimmed to Libor plus 725 bps to 750 bps from Libor plus 775 bps, the source said.

In addition, the original issue discount on the first-lien term loan was tightened to 99½ from 99 and the discount on the second-lien term loan was revised to 99 from 981/2, the source continued.

Furthermore, the MFN sunsets were eliminated.

As before, both term loans have a 1% Libor floor, the first-lien loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Recommitments are due at noon ET on Tuesday.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Madison Capital and KeyBanc Capital Markets LLC are leading the now $445 million, up from $440 million, deal.

Proceeds will be used to refinance existing debt and fund a dividend that was increased to about $165 million as a result of the small upsizing to the total amount of term loan borrowings and lower net debt refinanced at closing, the source added.

Pro forma leverage is 4.3 times through the first-lien and 5.8 times total.

Chromaflo is an Ashtabula, Ohio-based supplier of chemical and pigment dispersions to the thermoset composites and architectural & industrial paint and coatings industries.

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