Hexion gets $100 million term loan

By Sara Rosenberg

New York, March 3 - Hexion Specialty Chemicals Inc. closed on a new $100 million term loan on Tuesday with Apollo Investors as the lender, according to an 8-K filed with the Securities and Exchange Commission.

The term loan, due Dec. 31, 2011, is priced at Libor plus 225 basis points.

There is no amortization and no covenants.

It is expected that $80 million will be borrowed by the company and $20 million will be borrowed by the company's subsidiary, Borden Luxembourg Sarl.

Proceeds will be used for general corporate purposes.

The term loan is being provided as part of a settlement agreement with Apollo Global Management LLC in connection with the failed acquisition of Huntsman Corp.

Hexion is a Columbus, Ohio-based maker of thermoset resins.

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