CVC’s ACR set to launch €325m divi recap: Reuters

Bankers are set to launch a €325m leveraged loan for two of the four chemical assets CVC acquired from DSM in 2015, that will enable shareholders to take around €100m as a dividend, banking sources said.

CVC acquired Acrylonitrile and Composite Resins (ACR) from DSM in 2015, along with Caprolactam and Sitech. Collectively the Dutch-headquartered assets are held in a holding company ChemicaInvest.

Since its acqusition, ACR has grown with Ebitda now totalling €79m, from €57m in 2015. Off the back of strong growth, the dividend recapitalisation has launched, the sources said.

“The business has performed well since its 2015 acquisition,” one of the sources said.

Deutsche Bank, Citi, Rabobank and RBC are holding pre-marketing discussions with investors about raising a €325m term loan B, the sources said.

It is due to launch for general syndication to a broad group of institutional investors in November, the sources said.

As well as paying the dividend, the loan will be used with cash on the balance sheet to refinance around €250m of existing debt, the sources said.

Leverage following the dividend recapitalisation will stand in the mid-3s, the sources said.

ChemicaInvest manufactures polymer intermediates and composite resins for high-growth markets, according to CVC’s website.