W.R. Grace announces terms of credit agreement with Goldman Sachs Bank

By Caroline Salls

Pittsburgh, Feb. 7 - W.R. Grace & Co. entered into a credit agreement with administrative agent Goldman Sachs Bank USA on its Feb. 3 plan of reorganization effective date, according to an 8-K filed Friday with the Securities and Exchange Commission.

The credit agreement includes a $250 million U.S. revolving facility due 2019, a $150 million multicurrency revolving facility due 2019, a $700 million U.S. term loan due 2021, a €150 million term loan due 2021 and a $250 million delayed-draw term loan facility due 2021.

The company said it will use the proceeds of the U.S. and euro term loans to fund plan payments and credit facility costs, as well as for general corporate purposes. The delayed-draw term loan will be available one year after the effective date for general corporate purposes. The revolvers are available for working capital, capital expenditures and general corporate purposes.

Revolvers will accrue interest at the adjusted Eurocurrency rate plus 175 basis points or Base rate plus 75 bps; the U.S. term loan and delayed-draw term loan will accrue interest at Libor plus 225 bps with a 75 bps Libor floor; and the euro term loan will accrue interest at Euribor plus 250 bps with a 75 bps Euribor floor.

W.R. Grace, a Columbia, Md.-based specialty chemicals company, filed for bankruptcy on April 2, 2001 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 01-01139.

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