Oglebay Norton selects CIBC as financial advisor on refinancing bank debt

By Sara Rosenberg

New York, April 29 - Oglebay Norton Co. announced Monday that CIBC World Markets has been selected to act as financial advisor on a refinancing plan for the company's bank loan. The refinancing plan is expected to be presented to the bank group by June 30, 2002, according to a company press release.

On Dec. 24, 2001, the company amended its bank loan. One of the provisions in the amended agreement required the company to hire a financial advisor by April 30, 2002 to "develop an initial plan leading to a new capital structure which reduces the Borrower's Debt," according to a Securities and Exchange Commission filing. Keybank NA acted as administrative agent, Bank One, Michigan was syndication agent and The Bank of Nova Scotia was documentation agent for the amendment.

The company has a $118 million term loan and a $207 million senior revolving credit facility, the SEC filing said. Both loans mature on April 3, 2003. At December 31, 2001 the company had $45.798 million available for use on the senior credit facility. Interest rates on the revolver and the term loan are determined by the company's leverage ratio (see Table 1), according to the SEC filing.

Table 1: Interest rates on Oglebay Norton revolver and term loan

Leverage Ratio Applicable Margin Applicable Margin

for LIBOR Loans for Prime Rate Loans

Greater than or equal to 6.00 to 1.00 375 basis points 150 basis points

but less than or equal to 6.35 to 1.00

Greater than or equal to 5.50 to 1.00 350 basis points 125 basis points

but less than 6.00 to 1.00

Greater than or equal to 5.00 to 1.00 325 basis points 100 basis points

but less than 5.50 to 1.00

Greater than or equal to 4.50 to 1.00 300 basis points 75 basis points

but less than 5.00 to 1.00

Greater than or equal to 4.00 to 1.00 275 basis points 50 basis points

but less than 4.50 to 1.00

Greater than or equal to 3.50 to 1.00 250 basis points 25 basis points

but less than 4.00 to 1.00

Less than 3.50 to 1.00 225 basis points 0 basis points

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