Chemtura plans Monday launch for $125 million add-on term loan

By Sara Rosenberg

New York, Sept. 7 - Chemtura Corp. will hold a conference call at 11 a.m. ET on Monday to launch an up to $125 million add-on senior secured term loan that is being done under the accordion feature in its existing credit facility, according to a market source.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the joint lead arrangers and joint bookrunners on the deal.

Pricing on the add-on is Libor plus 400 basis points with a 1.5% Libor floor, in line with existing term loan pricing, and the new debt is being offered at par, the source said.

The add-on and the existing loan are fungible, the source added.

Proceeds will be used to fund potential bolt-on investment opportunities and for general corporate purposes.

"We continue to work on opportunities to monetize portfolio assets as well as 'bolt-on' investment opportunities in our areas of strategic focus," Craig A. Rogerson, chairman, president and chief executive officer, said in a news release.

"As a result, we may execute on one or more of these transactions in the second half of 2012 although there are many factors that may influence whether or not we are successful.

"We believe that this is an appropriate time to raise the liquidity to permit 'bolt-on' transaction(s). The increase in the facility will likely fund before the closing of any potential transaction," Rogerson added.

Chemtura is a Middlebury, Conn.-based manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products.

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