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Chemtura launches term loan repricing at Libor plus 275 bps
By Sara Rosenberg
New York, Oct. 21 - Chemtura Corp. launched with its call on Monday an amendment to its term loan that would reduce the interest rate and Libor floor and provide 101 soft call protection for six months, according to an 8-K filed with the Securities and Exchange Commission.
The repricing is talked at Libor plus 275 basis points with a 0.75% Libor floor and is being offered at par, versus current pricing of Libor plus 400 bps with a 1.5% Libor floor, sources said.
In addition, the amendment would set amortization on the term loan at 1% per annum and permit additional flexibility under certain operating covenants.
Consents are due on Friday, sources added.
Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the lead banks on the deal.
The company also said in the filing that it expects to pay down about $100 million to $120 million of its term loan debt with proceeds from the sale of its consumer products business.
Chemtura is a Middlebury, Conn.-based manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products.
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