Celanese subsidiary seeks to extend facility, pay down $200 million

By Angela McDaniels

Tacoma, Wash., Sept. 8 - Celanese Corp. subsidiary Celanese US Holdings LLC is seeking the consent of lenders to extend its senior credit facility and plans to repay approximately $200 million of its term loans using cash on hand, according to a company news release.

The facility consists of $2.28 billion of dollar-denominated and €400 million of euro-denominated term loans due 2014, a $600 million revolving credit facility due 2013 and a $228 million credit-linked revolver due 2014.

The company wants to extend the maturity of a portion of the term loans to October 2016 and the maturity of a portion of the revolvers to October 2015, in each case an extension of two and a half years.

The extended facilities will be subject to modified interest rates.

Approval from a majority of the lenders is needed in order to make the extension, and each lender must determine whether or not to extend the maturity of its individual commitments.

The company expects to complete the extension in late September.

Deutsche Bank Securities Inc. and Banc of America Securities LLC are the joint lead arrangers and bookrunners.

Celanese also entered into a new two-year $1.1 billion dollar-denominated (notional) forward swap agreement effective January 2012. The new swap agreement fixes Libor at 1.71% for 2012 and 2013.

The company said it has $1.4 billion of dollar-denominated interest rate swaps that will expire in January 2012, which currently fix Libor at 4.32%.

Dallas-based Celanese makes specialty materials and chemical products.

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