ICP Group tightens pricing on $825M 1st-lien, $225M 2nd-lien term loans

A J.P. Morgan-led arranger group is circulating revised pricing on the $825 million of first-lien and $225 million of second-lien covenant-lite term loans for Innovative Chemical Products Group (ICP Group), according to sources. Timing is also accelerated, and commitments are now due today at 5 p.m. ET with allocations to follow on Jan. 14.

Price talk for the seven-year first-lien term loan is now L+375, with a 0.75% Libor floor and an issue price of 99.5, revised from guidance at launch of L+400, at 99. As before, there are two pricing step-downs; 25 bps at 4.35x net first-lien leverage (0.5x inside opening leverage) and 25 bps upon a qualified IPO. Lenders are offered six months of 101 soft call protection.

The eight-year second-lien tranche is talked at L+775, with a 0.75% floor and an issue price of 98.5, versus L+800 at 98 at launch. There are hard call premiums at 102 and 101 in years one and two, respectively.

Revised pricing lowers the first-lien yield to maturity to 4.67%, from 5.02% previously, while the second-lien yield is now 9.07%, down from 9.42%.

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.

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

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

Proceeds will be used to partially fund the acquisition of Gardner-Gibson, which was announced on Jan. 4, and to refinance ICP's 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. J.P. Morgan is administrative agent on the first-lien and Antares is agent on the second-lien.

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.