Milacron, which just filed to go public, plans to pay a dividend to its sponsor, CCMP Capital Advisors.
Milacron is in the market for a $730 million term loan, according to Thomson Reuters Loan Pricing Corp. Bank of America Merrill Lynch is leading the deal, LPC said.
Cincinnati-based Milacron plans to use the loan to refinance debt, fund a $145 million distribution to CCMP, and pay related premiums and fees, Standard & Poor’s Ratings Services said in an April 8 note.
Earlier this month, Milacron, a plastics processing and industrial fluids company, filed to go public. The company did not disclose how many shares it would sell or the price.
Milacron has had its bumps. The company filed for bankruptcy in March 2009. Avenue Capital Group and DDJ Capital Management acquired Milacron later that year, in August, according to press reports. CCMP then bought Milacron in April 2012. The private equity firm paid $198.7 million for Milacron’s outstanding equity interests, the S-1 filing said.
A year later, Milacron grew by acquiring Mold-Masters for $965.5 million. CCMP invested another $289.2 million equity in the deal, the SEC filing said.
CCMP’s initial investment came from its second fund, which raised $3.4 billion in 2006. Fund II produced an average IRR of 14.34 percent and an average multiple of 1.62x as of Sept. 30, according to alternative assets data provider Bison.
CCMP closed on $3.6 billion for its third fund in September. The nascent fund has an average IRR of -10.61 percent and an average multiple of 0.92x as of Sept. 30, Bison said.
Executives for Milacron and CCMP declined to comment.
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