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Crompton in $945M refinancing move

By David Reed, UT EditorMiddlebury, Connecticut-Crompton Corp. has just completed a multi-part refinancing programme relating to debts totalling $945 million (€766 million).A statement from the firm, which produces and markets speciality chemicals, polymer products including polyurethanes, and equipment, says the components of the refinancing are:1. $600 million aggregate principal amount of privately offered senior notes. The new senior notes are a combination of $375 million of 9 7/8% Senior Notes due 2012 (with a yield to maturity of 10.0%), and $225 million of Libor plus 5.75% Senior Floating Rate Notes due 2010 (interest rate reset quarterly);2. $220 million in new credit facilities consisting of a $120 million revolving credit facility and a $100 million pre-funded letter of credit facility; and3. A three-year extension of the company’s domestic accounts receivable programme, giving Crompton the ability to sell up to $125 million in domestic accounts receivable (an increase of $10 million to the current facility).”This is a major step in securing Crompton’s financial future,” said Robert Wood, the firm’s chairman, president and chief executive officer. “We accomplished our key objective, which was to push out maturities in order to give management the opportunity to reinvigorate some very good businesses,” he explained, in a 16 Aug statement. “We are continuing to focus intensely on pricing discipline and are attacking the cost side of the equation in numerous ways, including our previously announced $50-million restructuring initiative, which is designed to streamline the organisation and its work processes,” his statement added.”

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