Ashland refinances term loans, revolver via new $850 million facility

By Angela McDaniels

Tacoma, Wash., March 31 - Ashland Inc. has completed a new four-year $850 million senior secured credit facility that consists of a $300 million term loan and a $550 million undrawn revolving credit facility, according to a company news release.

The new credit facility replaces Ashland's previous $1.65 billion term loan A, term loan B and revolving credit agreement.

The interest rate on the new facility is Libor plus 275 basis points.

At closing, $118 million of letters of credit issued under the previous credit agreement was transferred to the new credit facility.

The company also amended its three-year accounts receivable securitization, increasing the size to $350 million from $200 million. It received $300 million from the facility upon completion of the refinancing.

Bank of America Securities LLC and Bank of Nova Scotia were the joint lead arrangers for the new credit facility, and Bank of Nova Scotia was the lead agent on the securitization facility.

Ashland used the proceeds to repay all amounts outstanding under its previous senior secured credit facilities.

The company expects the refinancing to reduce its interest expense by $45 million to $50 million annually.

Ashland makes specialty chemical products and is based in Covington, Ky.

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