Neon Finance Company, a wholly owned subsidiary of WL Ross Holding (WLRH), allocated a $655 million senior secured term loan facility to acquire Nexeo Solutions Holdings.
Bank of America Merrill Lynch, Jefferies Finance and Deutsche Bank acted as joint lead arrangers and bookrunners.

The term loan facility will bear interest at a LIBOR rate, subject to a floor of 1.00%, plus an applicable margin of 4.25%, issued with an original issue discount of 0.50%. Initial pricing of the term loan Facility was tightened over the course of the syndication process due to an institutional investor order book that was more than two times oversubscribed.

Wilbur L. Ross, Jr., chairman of WLRH, said, “We are excited by the positive reception Nexeo has received from debt investors demonstrated by the significantly oversubscribed order book and favorable financing terms. It is a true testament to the quality of the business model and the management team.”

Proceeds from the debt financing are expected to be used to fund a portion of the purchase consideration for the acquisition. Nexeo Solutions will assume the obligations under the debt financing as the borrower following closing. Effectiveness of the credit agreement governing the term loan facility is expected to occur in early June 2016 and is subject to certain customary closing conditions.

Nexeo Solutions is a global chemical and plastics distributor with a centralized business model.