Hexion gets $200 million orders towards extended revolving facility

By Sara Rosenberg

New York, Jan. 14 - Hexion Specialty Chemicals Inc. now has about $200 million in commitments towards its extended revolving credit facility, up from the previously announced $175 million, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

The extended revolver is due on May 5, 2013 and 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.

As was already reported, earlier this week, Hexion launched an amendment proposal to senior secured credit facility that would allow for the extension of term loan and revolver maturities.

The extended term loan would mature on May 5, 2015 and pricing on the loan would be higher than current pricing.

The amendment would also revise some covenants and reset the accordion feature to $200 million.

In addition, the amendment would allow for the sale of $700 million of senior secured notes due 2018, 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, and would allow the sale additional debt, including junior or unsecured debt, in an amount not to exceed the amount available under the accordion feature.

To this end, the company announced on Thursday that it will be selling the $700 million of senior secured notes in a private offering.

The company plans to use the proceeds from the notes to repay $500 million of its U.S. term loans and provide incremental liquidity.

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.