Sensient gets $85 million term loan

By Sara Rosenberg

New York, Oct. 7 - Sensient Technologies Corp. closed on a new $85 million senior unsecured term loan due June 15, 2012 on Tuesday, according to an 8-K filed with the Securities and Exchange Commission.

Wells Fargo Bank acted as the arranger and administrative agent on the deal.

Pricing on the loan is initially Libor plus 225 basis points. The spread can range from Libor plus 150 bps to 275 bps based on leverage.

Covenants include a leverage ratio of not more than 3.50 to 1, a fixed-charge coverage ratio of not less than 2.00 to 1.00, and a consolidated adjusted net worth of at least $575.4 million plus 50% of its consolidated net earnings for each completed fiscal quarter beginning with the quarter ended Sept. 30.

Proceeds will be used to retire the company's public debt that matures in 2009.

The term loan can be borrowed on or before April 1, 2009.

Sensient is a Milwaukee-based manufacturer and marketer of colors, flavors and fragrances.

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