Transatlantic tranches

Dutch chemical firm LyondellBasell is expected to price this week. Around 180 people attended a bank meeting last week in London, where a sub-tranche of around €300m is being sold.

Goldman Sachs is leading the transatlantic deal along with bookrunners Merrill Lynch, ABN AMRO (now part of RBS) and UBS. The leads are marketing portions of the US$9.45bn term loan B from the overhang deal.

The B loan is split into three sub-tranches, broken down into a US$2.5bn piece and a €433m component, pro rated to exclude a US$1.89bn position already sold by ex-bookrunner Citi.

The TLB1 is callable at par. The TLB2 has call protection at 103 and 101.5, while the TLB3 is non-callable for the first two years and then callable at par. The coupon on the three tranches is 375bp over Libor, with a Libor floor at 325bp.

MLAs Bank of Scotland and Dresdner Kleinwort have launched general syndication of senior facilities backing the acquisition of Alliance Medical by Dubai International Capital (DIC), and Bridgepoint Capital, which has joined as a partner sponsor.

Senior debt is split between a £32m seven-year amortising TLA paying 225bp over Libor, a £110m eight-year bullet TLB paying 337.5bp, a £110m nine-year bullet TLC paying 387.5bp, a £100m seven-year capex facility paying 300bp and a £20m seven-year revolver paying 225bp.

A £100m 10-year mezzanine tranche has been placed with close relationship investors, and pays 950bp. Leverage is 4.2x through senior and 5.9x in total. The sponsors are committing 40% equity. A bank meeting is scheduled for May 15.

General syndication follows an earlier phase at the end of 2007 which targeted existing lenders and DIC relationship banks.

UK-based Alliance Medical provides a range of diagnostic imaging services used in hospitals across Europe. The business had reported revenues of £160m in the year to the end of March 2008.

IndustriKapital has mandated UniCredit (HVB) as sole bookrunner and MLA on a €205m debt package backing the buyout of Flabeg from EquiVest/CBR.

Landesbank Rheinland-Pfalz (LRP) and HSH joined as JLAs ahead of syndication. Facilities are split between €175m of senior and €30m of mezzanine.

Leverage is 3.1x through senior and 3.9x total debt. The bank meeting was held on May 15 in Furth im Wald, Germany. Germany-based Flabeg manufactures automotive mirror glass and mirrors for the renewable energy industry.

The €620m debt package backing the 2007 acquisition by leveraged British chemicals corporate Ineos of Norsk Hydro’s petrochemicals business Kerling has been launched by Barclays and Merrill Lynch. Ineos bought the business for NKr5.5bn in debt and equity.

Debt is split between €345m in senior facilities, including a €305m 18-month term loan and a €40m 18-month revolver, and a further €275m of two-year mezzanine paying 10%, split between 5% cash and 5% PIK.