Hexion to launch $2.05 billion of bank debt in next few weeks

By Sara Rosenberg

New York, Oct. 12 - Hexion Specialty Chemicals, Inc. plans to come to market within the next few weeks with $2.05 billion in new bank debt (Ba3), according to a market source.

Credit Suisse and JPMorgan are the lead banks on the deal.

The debt is comprised of a $2 billion term loan and a $50 million synthetic letter-of-credit facility, a company news release disclosed.

Proceeds from the bank debt, along with $825 million of senior secured debt that Hexion plans on raising, will be used to replace the company's May term loan and synthetic letter-of-credit facilities, fund a $500 million common stock dividend to its shareholders, and fund tender offers for its $300 million of second-priority senior secured floating-rate notes due 2010 and $325 million of 9% second-priority senior secured notes due 2014.

Hexion will continue to have access to its current five-year $225 million revolving credit facility.

The tender offers will expire on Nov. 8.

Hexion is a Columbus, Ohio, 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.