ICP Group launches term loan financing for acquisition, debt repayment

Innovative Chemical Products Group (ICP Group) is in the market with $825 million of first-lien and $225 million of second-lien covenant-lite term loans to finance an acquisition and refinance debt, according to sources. The J.P. Morgan-led deal launches with a lender call that is scheduled for today at 2 p.m. ET, and commitments are due at 5 p.m. ET on Jan. 14.

Price talk for the seven-year first-lien term loan is L+400, with a 0.75% Libor floor and an issue price of 99. That indicates a yield to maturity of around 5.02%. Lenders are offered six months of 101 soft call protection.

The eight-year second-lien tranche is talked at L+800 with a 0.75% floor, offered at 98. At talk, the yield is roughly 9.42%. There are hard call premiums at 102 and 101 in years one and two, respectively.

First-lien facility ratings came in at B/B3, with a 2 recovery rating from S&P Global Ratings. The second-lien is rated CCC/Caa2, with a recovery rating of 6. Corporate ratings are B-/B3, with positive and stable outlooks.

Financing also includes a $125 million, five-year revolver with a springing first-lien net leverage covenant.

The borrowers are NIC Acquisition Corp., CPC Acquisition Corp., and Gardner-Gibson Acquisition Corp.

Proceeds will be used to partially fund the acquisition of Gardner-Gibson, which was announced on Jan. 4, and to refinance its existing debt, which includes first-lien and second-lien term loans. Tampa, Fla.-based Gardner-Gibson is a manufacturer of liquid-applied roof coatings, roofing products, driveway sealers and specialty paints.

J.P. Morgan, BMO Capital Markets, Antares, and Goldman Sachs provided the debt financing for the acquisition.

ICP Group, based in Andover, Mass., is a provider of specialty coatings, adhesives and sealants for reroofing, building envelope, specialty surfaces, packaging and labeling applications. ICP is backed by Audax Private Equity.