Millennium Chemicals gets $250 million credit facility

By Sara Rosenberg

New York, Aug. 26 - Millennium Chemicals Inc. closed on a new $250 million five-year credit facility, according to an 8-K filed with the Securities and Exchange Commission.

J.P. Morgan Securities Inc. and Banc of America Securities LLC acted as co-lead arrangers and bookrunners, with JPMorgan as administrative agent and Bank of America the syndication agent.

The facility consists of a $125 million revolver, under which U.S. subsidiary Millennium America Inc. is the borrower, a $25 million Australian revolver, under which Millennium Inorganic Chemicals Ltd. is the borrower, and a $100 million term loan, under which Millennium Inorganic Chemicals is the borrower.

The U.S. revolver and the term loan carry an initial interest rate of Libor plus 150 basis points, but pricing can range from Libor plus 100 to 200 bps depending on leverage. The Australian revolver carries an initial interest rate of Australian Bank Bill Rate plus 150 bps, but pricing can range from the Australian Bank Bill Rate plus 100 to 200 bps based on leverage.

Revolver borrowings are available for liquidity and general corporate purposes and term loan borrowings will be used to facilitate the repatriation during 2005 of certain non-U.S. earnings. The repatriated funds will primarily be used to reduce the company's indebtedness.

The facility, which closed on Aug. 22, is an amendment and restatement of the company's $150 million senior secured revolver.

Millennium Chemicals is a Hunt Valley, Md.-based chemical company.

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