Standard Industries firms $2.5 billion term loan B at 99 OID

By Sara Rosenberg

New York, Aug. 6 – Standard Industries Inc. finalized the original issue discount on its $2.5 billion seven-year covenant-lite first-lien term loan B (Baa3/BBB-) at 99, the tight end of revised talk of 98.75 to 99 but wide of initial talk of 99.5, according to a market source.

Also, MFN on the term loan was changed to 50 bps for six months from 75 bps, and the MFN inside maturity carveout basket was removed, the source said.

Pricing on the term loan is Libor plus 250 basis points with a 0.5% Libor floor.

The term loan has 101 soft call protection for six months.

Earlier in syndication, the spread on the term loan firmed at the high end of the Libor plus 225 bps to 250 bps talk, and the Libor floor was changed from 0%.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and JPMorgan Chase Bank are the bookrunners on the deal.

Recommitments were scheduled to be due at 10:30 a.m. ET on Friday, the source added.

Proceeds will fund a distribution to Standard Industries Holdings Inc. that will be used for the acquisition of W.R. Grace & Co. for $70.00 per share in cash. The transaction is valued at about $7 billion.

Closing on the acquisition is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

W.R. Grace will operate as a standalone company within the portfolio of Standard Industries Holdings.

Standard Industries is a New York-based manufacturer of roofing products. W.R. Grace is a Columbia, Md.-based specialty chemical company.

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