W.R. Grace details $400 million five-year revolving credit facility

By Marisa Wong

Morgantown, W.Va., April 3 – W.R. Grace & Co. disclosed details of its new $400 million five-year revolving credit facility in an 8-K filed Tuesday with the Securities and Exchange Commission.

W.R. Grace entered into the revolving credit facility on April 3. The revolver replaces the company’s revolving credit facility and was undrawn at close.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and JPMorgan Chase Bank, NA are joint lead arrangers and bookrunners. KeyBanc Capital Markets, Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., PNC Capital Markets LLC and UniCredit Bank AG, New York Branch are co-managers. Goldman Sachs Bank is administrative agent.

Borrowings will bear interest at Libor plus 150 basis points to 175 bps, depending on the company’s first-lien leverage ratio.

Along with the revolver, the company’s $1.35 billion of new senior secured credit facilities include a $950 million seven-year term loan facility.

As previously announced, W.R. Grace increased its seven-year first-lien term loans to $950 million from $900 million and tightened pricing.

The facility now consists of a $350 million term loan B-1 and a $600 million term loan B-2. W.R. Grace added the additional funds from the upsizing to the B-1 loan.

The coupon is Libor plus 175 bps, down from talk of Libor plus 200 bps to 225 bps.

In addition, the original issue discount was narrowed to 99.875 from 99.75 previously.

The loans have a 0% Libor floor and an original issue discount of 99.75.

The term loan debt also has 101 soft call protection for six months and amortization of 1% per annum, as previously reported.

Proceeds from the term loan were used to repay the outstanding borrowings under the company’s credit agreement dated Feb. 3, 2014 and to fund a previously announced acquisition of the Polyolefin Catalysts business of Albemarle Corp. The company also plans to make a $50 million voluntary contribution to its U.S. defined benefit pension plan, according to Tuesday’s 8-K.

W.R. Grace is a Columbia, Md.-based product development and manufacturing company that produces and sells specialty chemicals and materials.

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