IPS talks $630 million of first-lien loans at Libor plus 375-400 bps

By Sara Rosenberg

New York, Sept. 9 – IPS Corp. launched on Thursday its $525 million seven-year first-lien term loan (B1/B-) and $105 million seven-year delayed-draw first-lien term loan (B1/B-) with price talk of Libor plus 375 basis points to 400 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The funded and delayed-draw first-lien term loan debt, which is being sold as a strip, has two leverage-based pricing step-downs and one additional step-down upon completion of an initial public offering, the source said.

Also, the first-lien term loan debt has 101 soft call protection for six months.

The ticking fee on the delayed-draw first-lien term loan is half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due at noon ET on Sept. 21, the source added.

The company’s $930 million of credit facilities also include a $90 million five-year revolver (B1/B-) and a $210 million eight-year privately placed second-lien term loan (Caa1/CCC).

Jefferies LLC, Credit Suisse Securities (USA) LLC, Apollo, BMO Capital Markets, MUFG, Nomura, SMBC and KeyBanc Capital Markets are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Centerbridge Partners LP from Cypress Performance Group LLC.

Closing is expected this year, subject to customary conditions and approvals.

IPS is a Compton, Calif.-based provider of specialized, highly engineered industrial products including solvent cements, rough plumbing and roofing products, and structural and surface adhesives.

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