Altadia sets price talk on €1.2B buyout term loan

A €1.2 billion, seven-year term loan B backing the acquisition of Altadia by Carlyle has been talked with a margin of E+425-450 with a 0% floor. The debt is guided at 99.5, suggesting a yield to maturity of 4.41%-4.67%.

The transaction launched with a lender call this morning, and commitments are due Feb. 17 via physical bookrunners Credit Suisse and Morgan Stanley. BofA Securities, BNP Paribas, Citi, Goldman Sachs, Mizuho and Santander are joint bookrunners on the transaction.

The covenant-lite facility will carry six months of 101 soft-call protection.

Corporate and issue ratings are B/B2 with an S&P recovery rating of 3.

Carlyle announced its acquisition of Altadia, formerly known as Esmalglass SAU, from Lone Star in December 2021. Carlyle will partner with current management, led by Vincente Bagan and Antonio Blasco, and plans to accelerate growth through the development of its research and development platform as well as via strategic acquisitions to enhance its international presence.

Lone Star itself had owned the asset since 2017, when its buyout was backed by a €375 million TLB. The company was most recently in the market with a €270 million term loan add-on in July 2021 to fund a shareholder dividend.

Headquartered in Castellon, Spain, Altadia is the largest global manufacturer of colors and glazes for the ceramic sector, employing more than 3,600 people across 19 countries. The group was formed in 2021 through the merger of Esmalglass-Itaca and Ferro Tile Coatings.