Styron seeks loan amendment to permit notes offer, modify covenants

By Sara Rosenberg

New York, July 8 - Styron is looking to amend its credit facility to allow for an $800 million bond offering, eliminate the interest coverage ratio and revise the secured leverage covenant, according to a market source.

Proceeds from the notes would be used to repay $400 million of term loan debt, and the remainder would fund a dividend.

Deutsche Bank Securities Inc. is the lead bank on the amendment that was launched on Thursday.

Consents are due on Tuesday.

Lenders are being offered a 15 bps amendment fee.

Styron is a Berwyn, Pa.-based materials company established in June 2010. The company will be changing its name to Trinseo SA later this year.

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