Taminco Group Said to Seek Lower Rates on Apollo LBO Loans

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.

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