Dynea North America's credit facility backing its buyout by Teachers' Private Capital hit the market last Wednesday. The deal consists of a $225 million first-lien term loan and a five-year, $20 million revolver. Pricing on the credit is LIBOR plus 2 1/4%, according to an investor.
"It's a commodity chemical business very similar to Hexion Specialty Chemicals except it's priced a little light," said one portfolio manager. "Unless [pricing] goes up we're not playing in it." The Hexion deal, led by JPMorgan and Credit Suisse, included a $225 million revolver, a $50 million synthetic letter of credit, a $1.625 million term loan "B" and a $375 million term loan "C" (CIN, 11/13). All tranches were priced at LIBOR plus 2 1/2%, according to Bloomberg.
Dynea's term loan was originally slated to be $250 million, with a $227 million U.S. term loan tranche and a $23 million Canadian term loan tranche (11/22). It could not be determined whether the Canadian tranche remained in the new deal or why it was changed. Calls to a UBS banker were not returned.
The financing will back Dynea's purchase by Teachers' Private Capital. The purchase price could not be determined. Dynea is a manufacturer of adhesive resins and overlay products for the engineered wood product industry utilized in high performance adhesion and surfacing applications. Dynea North America represents the North American operations of Dynea International Oy, a Finland-based company. Calls to spokesmen at Dynea and TPC were not returned.