Albemarle agrees $750 million credit facility, set to mature in 2016

By Aleesia Forni

Columbus, Ohio, Sept. 22 - Albemarle Corp. and Albemarle Global Finance Co. SCA entered into a new $750 million five-year revolving unsecured credit facility, according to an 8-K filed with the Securities and Exchange Commission.

The new facility matures in 2016, a date the company has the option to extend for one year.

Subject to the consent of the lenders, the company may increase the commitments under this revolver by $250 million.

Borrowings under this new facility bear interest at a range of Libor plus 90 basis points to 140 bps, depending on the company's credit rating from Standard & Poor's and Moody's Investor Services Inc.

On the date of closing, the applicable margin was Libor plus 97.5 bps.

Albemarle Global Finance may be denominated in currencies other than the U.S. dollar.

This facility also allows the issuance of letters of credit, as well as swingline loans.

Under the facility, the company must maintain a leverage ratio of no more than 3.5 to 1.

The facility, which closed on Thursday, amended and restated an existing $675 million revolver, set to mature in part on March 23, 2012 and March 23, 2013.

The new facility will be used to repay outstanding debts under the existing facility.

J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. served as joint lead arrangers and co-book managers.

Bank of America NA is administrative agent, swing line lender and letter of credit issuer.

JPMorgan Chase Bank NA is syndication agent, while BNP Paribas, Wells Fargo Bank NA and The Bank of Tokyo-Mitsubishi UFJ Ltd. are co-documentation agents.

Albemarle is a Baton Rouge, La.-based specialty chemical company.

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