Hexion talks $600 million term loan at Libor plus 350-375 bps

By Sara Rosenberg

New York, June 11 – Hexion Inc. is talking its $600 million seven-year term loan (Ba3/BB-) at Libor plus 350 basis points to 375 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The company is also getting a $600 million equivalent euro seven-year term loan (Ba3/BB-).

A bank meeting was held in London on Monday, and a meeting will be held in New York on Wednesday.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays and Deutsche Bank Securities Inc. are the leads on the deal.

Commitments are due on June 25.

The company is also getting $350 million ABL revolving credit facility.

Proceeds will be used to help fund the company’s exit from bankruptcy, fund plan distributions and repay debtor-in-possession facilities.

Hexion is a Columbus, Ohio-based chemical company.

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