Article/Intelligence
Roehm Sounds Out Lenders Over A&E; Advent Offers to Inject Additional €200M Equity to Support Extension, €150M to Fund SABIC Functional Forms Acquisition
Reporting: Robert Schach Roehm is sounding out lenders over an A&E to term out its debt, sources said. The German chemicals company aims to extend its €300 million-equivalent RCF by 2.5 years to July 2028 and its €1.67 billion-equivalent euro and dollar term loan Bs by 2.5 years to January 2029. The group is offering to boost margins on the RCF by 25 bps to 350 bps and on the TLB by 50 bps cashpay/50 bps PIK to E/S+500 bps/550 bps plus 50 bps PIK. Sponsor Advent is offering to inject €200 million of additional equity to support the amend and extend, which will help fund the completion of its new methyl methacrylate LiMA plant. The construction of the plant is on track to come online and start scaling up production in the second half of 2024. Roehm expects the Texas-based facility, which will use lower-cost ethylene as a feedstock, to generate in excess of €150 million of incremental run-rate EBITDA once it is fully ramped up. Advent is also providing €150 million of additional equity to fund its $220 million acquisition of Saudi Basic Industries Corp.’s, or Sabic’s, Functional Forms polycarbonate-based films and sheet business, while SABIC is providing[...]