Credit Suisse First Boston and Deutsche Bank have launched syndication of a $575 million "C" term loan for specialty chemical maker Noveon. The six-year credit is to refinance existing debt and price talk is in the LIBOR plus 23/4-3% range. Noveon reported $865.9 million in total debt as of last March, with $499 million outstanding on its "B" loan and $73 million outstanding on its "A" loan. Bankers at CSFB and Deutsche Bank did not return calls before press time.
Noveon was formed in February 2001 when an investor group led by AEA Investors acquired the performance materials business from The BFGoodrich Company for $1.38 billion. This transaction was backed in part by a $635 million credit facility and $275 million of 11% senior notes due 2011. The existing credit facility is priced in the LIBOR plus 31/2% range. Michael Friday, executive v.p. and cfo of Noveon, did not return calls.