DuBois Chemicals plans to issue $90M add-on term loan to repay debt

DuBois Chemicals Inc. is in the market with a $90 million incremental first-lien term loan to refinance debt, according to sources. Commitments to the J.P. Morgan-led deal are due at noon ET on March 17, reflecting an acceleration from the original due date of March 19.

The add-on is offered at 98-98.75 and will be fungible with the issuer's existing covenant-lite first-lien term loan due September 2026 that is priced at L+450, with a 0% Libor floor. At talk, the yield to maturity is 5.04%-5.21%.

Proceeds will be used to refinance first-lien secured notes — including $40 million that is outstanding and $50 million of a delayed-draw component that is currently undrawn — to repay borrowings under its $90 million revolving credit facility and to fund general corporate purposes.

First-lien ratings are B-/B2, with a 3 recovery rating from S&P Global Ratings. Second-lien ratings are CCC/Caa2, with a recovery rating of 6. Corporate ratings are B-/B3, with stable and negative outlooks. DCG Acquisition Corp. is the borrower.

DuBois in October 2019 placed the existing first-lien term loan, along with a $145 million second-lien term loan due September 2027 (L+850, 0% floor), to finance the buyout of the company by Altas Partners. Pro forma for this transaction, the outstanding first-lien term loan amount will be $602 million, according to Moody's.

DuBois Chemicals, based in Sharonville, Ohio, is a provider of specialty chemical solutions.