Domtar Personal Care preps launch of $620M term loan to back buyout by AIP

A Deutsche Bank-led arranger group has scheduled a lender call for 10 a.m. ET on Tuesday, Feb. 9, to launch a $620 million term loan B to finance the acquisition of Domtar Personal Care by American Industrial Partners, according to sources. Commitments are due by Feb. 18.

Price talk is not yet announced but note that the seven-year TLB is covenant-lite and comes with six months of 101 soft call protection.

Barclays, BNP Paribas, RBC Capital Markets and CIBC are joint bookrunners on the deal.

Domtar Corp. announced on Jan. 8 that it was selling its personal care business to AIP for $920 million. The two largest product categories of the business are adult incontinence and baby diapers, which are sold through retail stores, pharmacies, grocery stores and into the institutional healthcare system, such as hospitals and nursing homes.