Crompton amends loan to relax leverage and interest coverage ratios

By Sara Rosenberg

New York, Nov. 12 - Crompton Corp. amended its $300 million five-year revolver, which is scheduled to mature in October 2004, to modify the leverage and interest coverage ratios and allow for greater flexibility in the third and future quarters, according to a filing with the Securities and Exchange Commission.

Citicorp is the administrative agent, JPMorgan Chase Bank is the syndication agent, and Bank of America and Deutsche Bank Securities are the co-documentation agents.

More specifically, the leverage ratio was changed to 4.25-to-1 starting on the effective date of the amendment and will become 3.5-to-1 on July 1.

The interest coverage ratio was changed to 2.25-to-1 starting on the effective date of the amendment and will become 2.75-to-1 on June 30 and 3-to-1 on Sept. 30, according to the filing.

As of Sept. 30, the company had $25 million of borrowings under the credit facility carrying an interest rate of 2.95%.

Crompton is a Middlebury, Conn., manufacturer and marketer of polymer and specialty products.

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