Element Materials Technology, the London-based testing services company backed up its Singaporean state-owned investor Temasek. It was as much as $1.825bn-equivalent term loan B for a positive market condition. A $1.425bn tranche finalized at 99.5 after it tightened from 98.5 to 99.0. The launch was at 97.5-98.0. The finalization of a $400m-equivalent euro-denominated tranche was at 99.5 from the previous guidance of 99.0-99.5.
The pricing of both tranches is unchanged. It remains at revised guidance of 425bp over SOFR/Euribor. It tightened from 450bp at launch. The credit spread adjustment on the dollar tranche also remains unchanged. It is at 10bp flat. The other that remains the same is a 0.5% floor on the dollar tranche. Plus, a 0% floor on the euro tranche.
An investor said that there is no-brainer deal with attractive pricing. This is because the strong appetite for the deal is good news for the banks that have made around $27.29bn. It underwrites across loans and bonds. Plus, it is also after the leveraged finance market closed in the wake of Russia’s invasion of Ukraine.
After Easter, the larger deals are expected to come. It includes a a €2.1bn-equivalent term loan B backing Unilever’s sale of its tea business to CVC, said IFR Asia. It covered the much-delayed financing for CD&R’s buyout of UK supermarket Morrisons. The lenders still own £4.4bn of paper to syndicate.
Temasek package for Element includes a $350m pre-placed second-lien, a $800m PIK loan at the hildco level. Other coverage is a $200m revolving credit facility and a $200m acquisition capex facility. The credit family rating is B2/B, then the rating issue is B1/B. The bookrunners are Bank of America leading dollar tranche and Goldman Sachs leading the euro tranche.
