CIBC World Markets and Citigroup held a bank meeting last Wednesday for Xerium Technologies, launching syndication of a $750 million loan in connection with its planned initial public offering. The loan consists of a seven-year, $100 million revolver and a six-and-a-half year, $650 million "B" loan. Both tranches are priced at LIBOR plus 2 1/4% and the term loan is split between U.S. dollars, euros and a small amount of Canadian currency.
Headquartered in Westborough, Mass., the company is a manufacturer and supplier of products used in the production of paper. Xerium is 73% owned by Apax Partners, which bought BTR Paper Technology from Invensys in 1999. Xerium is the holding company for the Paper Technology Group. According to a regulatory filing, Xerium had $594.3 million of term loans outstanding and $153.8 million under its mezzanine credit facility.