Omnova amends to lower spreads, increase flexibility for acquisitions

By Sara Rosenberg

New York, Sept. 13 - Omnova Solutions Inc. amended its credit facility, improving pricing and providing increased flexibility for acquisitions and debt repurchases, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Under the amendment, pricing on the facility now ranges from Libor plus 125 to 200 basis points, depending on the company's fixed-charge coverage ratio (see table).

The amendment was completed on Sept. 8.

JPMorgan is the administrative agent on the deal.

Omnova is a Fairlawn, Ohio-based provider of emulsion polymers and specialty chemicals, decorative and functional surfaces, and single-ply roofing systems.

Table: Applicable Margins

Fixed-Charge Coverage Ratio Pricing

<1.50 Libor plus 200 bps

>1.50, but <1.75 Libor plus 175 bps

>1.75, but <2.00 Libor plus 150 bps

>2.00 Libor plus 125 bps

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