Cabot Microelectronics to seek $275 million loan for recapitalization

By Sara Rosenberg

New York, Dec. 13 - Cabot Microelectronics Corp. plans on getting a new $275 million credit facility as part of a proposed recapitalization, company officials said in a conference call on Tuesday.

The facility is expected to consist of a $175 million term loan with a maturity of no less than five years and a $100 million undrawn revolver.

The company is in discussions with financing sources and anticipates closing on the new credit facility in early 2012, officials said.

Proceeds, along with cash on hand, will fund a special cash dividend of $15 per share, or roughly $345 million, to the company's shareholders during the first quarter of 2012.

Payment of the special dividend is contingent upon arranging the debt financing with terms and conditions that are acceptable to the company.

Leverage is less than 1.75 times trailing four quarters EBITDA, officials added in the call.

Cabot is an Aurora, Ill.-based supplier of chemical mechanical planarization consumables to the semiconductor industry.

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