Daily News: September 8, 2017

Deutsche Bank Agents Over $1B Trinseo Facility


Trinseo Materials Operating, Trinseo Materials Finance, and wholly-owned subsidiaries of Trinseo entered into a senior secured credit agreement with Deutsche Bank New York Branch as administrative agent, collateral agent L/C issuer and swing line lender, and Citigroup Global Markets as syndication agent.

According to a related 8-K filing, the senior credit facility provides for senior secured financing consisting of a $375 million revolving credit facility, with a $25 million swingline subfacility and a $35 million letter of credit subfacility, as well as a $700 million senior secured term loan B facility.

Barclays, Deutsche Bank Securities, Citigroup Global Markets, HSBC Securities, Goldman Sachs, The Bank of Nova Scotia, BNP Paribas, Mizuho Bank, Morgan Stanley and Sumitomo Mitsui were joint lead arrangers.

The revolving facility has a maturity date of five years and the term loan has a maturity date of seven years.

The borrowers may request incremental revolving credit commitments or term loans up to an amount equal to $375 million plus the amount of incremental revolving credit commitments or term loans such that the first lien net leverage ratio and the secured net leverage ratio would be no greater than 2.00 to 1.00.

Loans under the revolving facility may be maintained from time to time as (a) LIBOR loans, which bear interest at a rate per annum equal to the LIBOR plus the applicable margin, or base rate loans which shall bear interest at a rate per annum equal to the base rate plus the applicable margin

The facility is collateralized by a security interest in substantially all of the assets of Trinseo Materials Operating, Trinseo Materials Finance, and the guarantors thereunder including Trinseo Materials, certain U.S. subsidiaries and certain foreign subsidiaries organized in Luxembourg, The Netherlands, Hong Kong, Singapore, Ireland, Germany and Switzerland.