OM Group expects completion of new term loan C by the end of June

By Sara Rosenberg

New York, June 18 - OM Group Inc. anticipates closing on its new $600 million senior secured term loan C by the end of June, according to a company spokesperson. Credit Suisse First Boston is the lead bank on the deal.

The new C tranche, which expires in 2007, will be used to fully pay down the company's existing term loan A and term loan B, as well as to reduce borrowings under the existing revolver. Interest rates on the term C are not currently being disclosed, the spokesperson said.

Security for the new loan, which is the same as the security for the existing term loans, is a first priority perfected lien on all domestic assets, the capital stock of domestic subsidiaries and 65% of the stock of foreign subsidiaries, the spokesperson said.

Standard & Poor's rates the term loan C at BB.

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