W.R. Grace lowers U.S. and euro term loan pricing by 25 bps

By Sara Rosenberg

New York, Jan. 16 - W.R. Grace & Co. reduced pricing on its U.S. seven-year term loan debt to Libor plus 225 basis points from Libor plus 250 bps and on its euro seven-year term loan debt to Euribor plus 250 bps from Euribor plus 275 bps, according to a market source.

In addition, the original issue discount on the term loan tranches was revised to 99¾ from 991/2, the source said.

As before, the loans have a 0.75% floor.

The U.S. debt includes a $700 million funded term loan and a $250 million delayed-draw term loan, and the euro loan is a funded piece that is the equivalent of $200 million.

The delayed-draw loan has a 100 bps ticking fee.

The company's $1.55 billion credit facility (Ba2/BBB-) also includes a $400 million five-year revolver.

Commitments continue to be due on Wednesday, the source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and HSBC Securities (USA) Inc. are the lead banks on the deal.

Proceeds will be used to help fund the company's emergence from Chapter 11 bankruptcy.

W.R. Grace, a Columbia, Md.-based specialty chemicals company, filed for bankruptcy on April 2, 2001. Its Chapter 11 case number is 01-01139.

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