The "B" and "C" tranches of Goldman Sachs' jumbo credit for German industrial chemicals giant Messer Griesheim blew out last week in the U.S. with commitments of $800 million coming in, igniting expectation that pricing will change. The loan, split between the U.S. and Europe, could also see the "B" upsized due to the strong institutional fervor and to reduce the size of the European credit, said a banker familiar with the situation.
The U.S. portion of the deal is a $153 million, nine-year "B" tranche priced at LIBOR plus 2 1/4% and a $162 million seven-year "C" tranche at LIBOR plus 3 1/2%. There is also a two-year $225 million senior term "A" disposal facility priced at LIBOR plus 3 1/2%. The U.S. bank meeting was held on May 8. The banker said that the institutions have acted pretty quickly in the U.S., whereas in Europe deals move a little slower.
The European credit includes a EUR 170 million term loan "B" at LIBOR plus 2 3/4%, and a $170 million "C" at LIBOR plus 2 1/4%, according to Capital DATA Loanware. Other mandated arrangers are Hypovereinsbank, Royal Bank of Scotland and J.P. Morgan Chase. The proceeds of the credit totaling $1.9 billion are to support Allianz Capital Partners and Goldman Sachs Capital Partners acquisition of a two-thirds interest in Messer. The company is active in over 55 countries, producing a variety of gas applications used in transport, technology, healthcare, industry, food, processing, water treatment, farming and recycling.