Eastman Chemical seals $750 million revolver at Libor plus 100-175 bps

By Susanna Moon

Chicago, Dec. 13 - Eastman Chemical Co. closed a $750 million revolving credit agreement due Dec. 7, 2016 last Wednesday with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans will be Libor plus 100 basis points to 175 bps, based on the company's credit ratings.

The credit facility replaces the $700 million revolving credit agreement, with substantially similar terms, set to expire in April 2012 and April 2013.

The limit for issuance of letters of credit is $250 million.

There was no outstanding debt under the old facility as of closing and no outstanding debt under the new facility as of Tuesday.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the lead arrangers, and JPMorgan Chase Bank, NA is syndication agent. Bank of America, NA, Barclays Bank plc, Royal Bank of Scotland plc and Wells Fargo Bank, NA are documentation agents.

Under the new terms, the company must maintain a ratio of debt to consolidated EBITDA of no more than 3.5 times for any four consecutive quarters.

Eastman makes chemicals, fibers and plastics and is based in Kingsport, Tenn.

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