Styron ups pricing on $800 million term loan to Libor plus 575 bps

By Sara Rosenberg

New York, June 7 - Styron increased pricing on its $800 million first-lien term loan to Libor plus 575 basis points from the Libor plus 550 bps area and widened the original issue discount to 98 from talk of 98½ to 99, according to a market source.

The first-lien term loan still provides for a 1.75% Libor floor and 101 soft call protection for one year.

Styron's $1.04 billion credit facility (B2/B+) also includes a $240 million revolver.

Deutsche Bank, Barclays and HSBC are the lead banks on the credit facility, with Deutsche the left lead.

Commitments were due from lenders at 5 p.m. ET on Monday.

Proceeds will be used to help fund the buyout of the company by Bain Capital from Dow Chemical for $1.63 billion.

Under the agreement, Dow Chemical has an option to receive up to 15% of the equity of Styron as part of the sale consideration.

The transaction is expected to close by August, subject to the completion of customary conditions and regulatory approvals.

Styron is a diversified chemicals and plastics company that is expected to have $3.5 billion in revenue based on 2009.

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