Albemarle obtains up to $1.15 billion cash bridge facility agreement

By Tali Rackner

Norfolk, Va., Dec. 8 – Albemarle Corp. entered into a cash bridge facility that provides for up to $1.15 billion in loans via Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility is guaranteed by each of the company’s subsidiaries that guarantee its five-year revolving unsecured credit facility.

Interest is Libor plus a margin of 112.5 basis points to 200 bps, based on the company’s credit ratings.

The facility will mature on the date that is 60 days following the completion of Albemarle’s planned merger with Rockwood Holdings, Inc.

Borrowings are intended to be used as short-term borrowings to fund a portion of the cash consideration payable in connection with the anticipated acquisition of Rockwood and pay related fees and expenses. All proceeds of any dividends or distributions received by the company from Rockwood are required to be used to prepay the cash bridge facility.

The facility contains customary events of default, representations and warranties and covenants, including a financial maintenance covenant requiring Albemarle to maintain a maximum leverage ratio of 4.5 times consolidated EBITDA.

Merrill Lynch, Pierce, Fenner & Smith, Inc. is the lead arranger and bookrunner.

Baton Rouge, La.-based Albemarle is a manufacturer of polymers and fine chemicals.

Princeton, N.J.-based Rockwood is a specialty chemicals and advanced materials company and a wholly owned subsidiary Rockwood Specialties Group, Inc.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.