Constar amends loan, extending maturity, lowering rate, increasing size

By Sara Rosenberg

New York, March 26 - Constar International Inc. amended its credit facility, extending the maturity date by three years to Feb. 11, 2012, reducing rates and increasing the commitment to $75 million from $70 million, according to an 8-K filed with the Securities and Exchange Commission Monday.

The maturity date can be accelerated by 90 days if the company's secured notes have not been refinanced, or the terms of such refinanced notes are materially less favorable in the aggregate to the lenders.

Pricing on the facility was reduced by 50 basis points so that the grid, which is based on monthly available credit, now ranges from Libor plus 150 to 200 bps.

The amendment also reduced the 50 bps commitment fee to either 37.5 bps or 25 bps, depending on monthly available credit.

In order to access the additional $5 million in commitments, the company must satisfy a fixed-charge coverage ratio. As of Monday, this ratio was unable to be met.

The amendment was completed on March 20.

Citicorp is the administrative agent on the deal.

Constar is a Philadelphia-based maker of polyethylene terephthalate food and beverage containers.

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