24 Nov, 2021

Solmax International completes $125M add-on term loan; terms

Solmax International Inc. has completed a $125 million fungible add-on to its covenant-lite term loan B due July 2028 (L+475, 0.75% Libor floor) at an original issue discount of 99.5 via lead arrangers Barclays and TD Securities, according to sources. The add-on was upsized by $25 million and priced at the tight end of talk. Proceeds will be used to fund the company's acquisition of Propex and to repay revolver borrowings. Solmax provides geosynthetics products for environmental containment, infrastructure and civil engineering across multiple end markets.

Terms:

Borrower Solmax International Inc. (Groupe Solmax Inc.; Solmax US LP)
Issue $125 million fungible add-on term loan B
UoP M&A, Refinancing
Spread L+475
Libor floor 0.75%
Price 99.50
Tenor July 2028
YTM 5.71%
Four-year yield 5.76%
Call protection Same as existing
Corporate ratings B/B2
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers Barclays/TD
Admin agent Barclays
Px Talk L+475/0.75%/99-99.5
Sponsor Private
Notes Upsized by $25 million. Tranche size now approximately $660 million.