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Goldman Sachs Agents Atotech’s Refinance of Senior Secured Credit Facilities

March 22, 2021, 05:34 AM
Filed Under: Chemicals

Atotech Limited closed on the refinancing of its senior secured credit facilities. In particular, five of its indirect wholly owned subsidiaries—Alpha 3 B.V., Alpha US BidCo, Inc., Atotech B.V., Atotech Deutschland GmbH and Atotech Asia Pacific Limited (collectively, the “Borrowers”) successfully refinanced the Company’s existing senior secured credit facilities and entered into a new credit agreement (the “Credit Agreement”). The Credit Agreement provides for a U.S. dollar-denominated senior secured term loan facility in an initial aggregate principal amount of $1.35 billion (the “USD Term Loan”), a Euro-denominated senior secured term loan facility in an initial aggregate principal amount of €200.0 million (the “EUR Term Loan”), and a senior secured multi-currency revolving credit facility that provides for revolving loans, letters of credit and ancillary facilities in an aggregate principal amount of up to $250.0 million (the “Revolving Credit Facility”).

Peter Frauenknecht, Chief Financial Officer of Atotech said, “We are delighted we were able to complete the refinancing so quickly after our IPO last month. We are also very pleased with the pricing and extension of the maturities of this transaction, which we believe reflect our reduced leverage as a result of the IPO, and our strong business outlook. Assuming a stable rate environment, we expect that our new debt structure will result in a meaningful annual interest expense reduction. It also provides continued financial flexibility to invest in our business.”

The USD Term Loan and EUR Term Loan mature in March 2028 and the net proceeds from borrowings thereunder were used to fund the refinancing in full of the Company’s outstanding existing term loan credit facilities, which were set to mature in January 2024, and to repay and replace its existing revolving credit agreement, which was to mature in January 2022. The Revolving Credit Facility matures in March 2026 and borrowings thereunder were used to replace existing letters of credit under the Company’s previous revolving credit facility. Future borrowings under the Revolving Credit Facility are expected to be used to fund working capital and for other general corporate purposes, including permitted acquisitions and other investments.

Borrowings under the USD Term Loan bear interest at a variable rate of 250 basis points above LIBOR, with a minimum interest rate of 50 basis points. Borrowings under the EUR Term Loan bear interest at a variable rate of 275 basis points above EURIBOR, with a minimum interest rate of zero basis points and a potential leverage-based decrease in interest rate to 250 basis points above EURIBOR. The Revolving Credit Facility bears interest at a variable rate of 200 basis points above LIBOR and a commitment fee of 37.5 basis points.

Goldman Sachs Bank USA serves as administrative agent and collateral agent under the Credit Agreement and Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A, Barclays Bank Plc, Credit Suisse International, Credit Suisse Loan Funding LLC, Citibank, N.A., London Branch, Unicredit Bank AG, Deutsche Bank Securities Inc., HSBC Trinkaus & Burkhardt AG, Standard Chartered Bank AG, and TCG Senior Funding L.L.C. all serve as joint lead arrangers and joint bookrunners.

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