| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Hexion Specialty Chemicals, Inc. > News item |
Hexion launches amendment to extend maturities, allow sale of notes
By Sara Rosenberg
New York, Jan. 12 - Hexion Specialty Chemicals Inc. launched an amendment proposal to senior secured credit facility lenders on Tuesday that would allow for the extension of term loan and revolver maturities and allow for the sale of $700 million of senior secured notes due 2018, according to an 8-K filed with the Securities and Exchange Commission.
The extended term loan would mature on May 5, 2015 and pricing on the loan would be higher than current pricing.
Hexion has already received about $175 million of commitments, including the $147 million of commitments that were obtained in December 2009, from revolver lenders for new revolver loans due May 5, 2013, which will take effect upon the May 31, 2011 expiration of the existing revolver.
Pricing on the extended revolver is Libor plus 450 basis points.
Committing revolver lenders are being offered a 200 bps upfront fee as well as a 200 bps ticking fee.
Hexion plans to pursue additional commitments for the new revolver.
The amendment would also revise some covenants and reset the accordion feature to $200 million.
In addition, the amendment would permit the company to issue additional senior notes or loans in the future as long as an agreed amount of proceeds from the new debt are used to prepay term loans and/or revolver loans at par.
Also, the company would be able to issue additional debt, including junior or unsecured debt, in an amount not to exceed the amount available under the accordion feature, and would be able to obtain certain types of receivables financing.
Hexion is a Columbus, Ohio-based thermoset resins company.
© 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.