Solmax sets price talk on $100M add-on term loan for M&A; commits due Nov. 23

Lead arrangers Barclays and TD Securities are out with price talk on the $100 million incremental first-lien term loan for Solmax International Inc. following a lender call this morning, according to sources. Commitments are due by noon ET on Tuesday, Nov. 23.

Price talk for the add-on term loan is set at an original issue discount in the range of 99-99.5 and is fungible with the issuer's existing covenant-lite first-lien term loan due July 2028 that is priced at L+475, with a 0.75% Libor floor. At talk, yield to maturity is approximately 5.81%-5.91%.

Proceeds from the add-on will be used to fund the company's acquisition of Propex.

The issuer placed its existing first-lien term loan in June 2021 to finance the company's acquisition of TenCate Geosynthetics and to refinance debt. The term loan totaled $535 million when it was issued, and financing also included a $100 million revolving credit facility due 2025.

Current first-lien ratings are B/B2, with a 3 recovery rating from S&P Global Ratings, while corporate ratings are B/B2, with stable outlooks from both Ratings and Moody's. The borrowers are Groupe Solmax Inc. and Solmax US LP.

Solmax provides geosynthetics products for environmental containment, infrastructure and civil engineering across multiple end markets.