KMG Chemicals trims pricing on facility, lifts size to $110 million

By Susanna Moon

Chicago, April 29 - KMG Chemicals, Inc. amended its credit terms, pushing out the maturity to April 30, 2018 and trimming pricing to Libor plus 175 basis points, which was 1.95% just before the amendment.

Also, KMG may now draw up to $110 million, increased from $60 million, and the facility now includes an accordion feature for up to $25 million more commitments.

The company amended its loan facility Monday with Wells Fargo Bank, NA, Bank of America, NA, Prudential Insurance Co. of America and Pruco Life Insurance Co., according to an 8-K filing with the Securities and Exchange Commission.

The spread over Libor ranges from 150 bps to 225 bps, based on leverage.

The new terms also revise the method for calculation of the fixed charge coverage ratio. The matrix for the calculation of interest payable on the revolving loan facility was revised slightly lower, the filing noted.

There was $2 million outstanding on the facility as of March 31.

The amendment was in connection with the company's plans to acquire the Ultra Pure Chemicals subsidiaries of OM Group, Inc. for $60 million in cash, including working capital.

KMG Chemicals is a Houston company that manufactures, formulates and globally distributes specialty chemicals.

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