Resolution Performance Products amends loan, allowing note sale, changing covenants

By Sara Rosenberg

New York, Dec. 13 - Resolution Performance Products LLC amended its credit facility to allow the company to sell senior subordinated notes with proceeds going towards the repayment of a portion of its outstanding term loans, changing financial covenants (see Table 1) and reducing the revolver size to $100 million from $150 million, according to a filing with the Securities and Exchange Commission.

Morgan Stanley Senior Funding Inc. is the administrative agent on the credit facility.

Resolution Performance Products is a Houston maker of epoxy resins and vesatic acids.

Table 1: Resolution Performance Products' new interest coverage and leverage covenants

Fiscal quarter ending Consolidated interest coverage Adjusted total leverage

Dec. 31, 2002 through Sept. 30, 2003 1.40:1.0 6.75:1.0

Dec. 31, 2003 1.40:1.0 6.50:1.0

March 31, 2004 through Sept. 30, 2004 1.55:1.0 6.50:1.0

Dec. 31, 2004 1.55:1.0 6.25:1.0

March 31, 2005 1.70:1.0 5.20:1.0

June 30, 2005 1.70:1.0 5.15:1.0

Sept. 30, 2005 1.70:1.0 5.10:1.0

Dec. 31, 2005 1.70:1.0 5.00:1.0

March 31, 2006 1.90:1.0 4.95:1.0

June 30, 2006 1.90:1.0 4.90:1.0

Sept. 30, 2006 1.90:1.0 4.85:1.0

Dec. 31, 2006 2.00:1.0 4.75:1.0

March 31, 2007 through March 31, 2008 2.00:1.0 4.50:1.0

Thereafter 2.25:1.0 4.50:1.0

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