Albemarle gets $1.25 billion in term loans to redeem Rockwood notes

By Wendy Van Sickle

Columbus, Ohio, Sept. 14 – Albemarle Corp. obtained $1.25 billion in new term loans that it will use to redeem a subsidiary’s senior notes, according to a Monday press release.

The term loan facility consists of a $300 million 364-day term loan and a $950 million five-year term loan, according to an 8-K filed with the Securities and Exchange Commission.

Initial interest on the term loans will be Libor plus 137.5 basis points. Interest can range from Libor plus 100 bps to 187.5 bps, based on Albemarle’s debt ratings.

J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., Wells Fargo Securities, LLC and BNP Paribas Securities Corp. acted as joint lead arrangers and joint bookrunners; JPMorgan Chase Bank, NA as administrative agent; Bank of America, NA, BNP Paribas and Wells Fargo Bank, NA as co-documentation agents; and the Bank Of Tokyo-Mitsubishi UFJ, Ltd. Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp. and ING Bank NV as co-syndication agents.

The term loans will be used to redeem subsidiary Rockwood Specialties Group, Inc.’s 4 5/8% senior notes due 2020.

The credit agreement also requires the company to prepay outstanding term loans in connection with its previously announced divestitures of its minerals, fine chemistry services and metal sulfides lines of business, according to the 8-K.

Albemarle is a Baton Rouge, La., specialty chemicals company.

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