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Taminco Group Said to Seek Lower Rates on Apollo LBO Loans

Jan. 10 (Bloomberg) -- Taminco Group NV, the chemical ingredients manufacturer controlled by Apollo Global Management LLC, is seeking to lower the rate it pays on $507 million of term loans in dollars and euros due in 2019, according to a person with knowledge of the transaction.

The interest on the $348 million piece will be reduced to 3.25 percentage points to 3.5 percentage points more than the London interbank offered rate while the interest on the 120 million-euro ($159 million) portion will be decreased to 3.5 percent points to 4 percentage points more than the euro interbank offered rate, said the person, who asked not to be identified because the information is private. Both term loans will contain a 1 percent minimum on the benchmarks.

Lenders are being offered six months of soft-call protection of 101 cents from the date of the re-pricing, said the person, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first six months.

The company’s existing dollar and euro denominated term loans pay interest at 4 percentage points and 4.25 percentage points more than Libor/Euribor respectively, according to data compiled by Bloomberg. Both loans have a 1.25 percent floor, the data show.

Citigroup Inc. is arranging the deal for the Ghent, Belgium-based company and hosted a lender call this morning, according to the person. Apollo, a New York-based private-equity firm with $110 billion of assets under management, acquired Taminco from CVC Capital Partners Ltd. for 1.1 billion euros in February, Bloomberg data show.

Melissa Mandel Kvitko, a spokeswoman for Apollo, declined to comment.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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