Ferro sets Tuesday launch for $350 million revolving credit facility

By Sara Rosenberg

New York, Aug. 2 - Ferro Corp. has scheduled a bank meeting for Tuesday to launch its proposed $350 million revolving credit facility, according to a market source.

PNC Bank is the lead bank on the deal.

Proceeds will be used to help fund the refinancing of an existing credit facility.

Other funds for the refinancing will come from $250 million of senior notes that will also be used to repay the company's $172.5 million of 6.5% convertible senior notes due 2013.

The tender offer for the convertibles, which began last week and expires on Aug. 23, is subject to completion of the notes offering and entry into the new credit facility or an amendment to the existing facility to allow for the convertibles repurchase.

The company recently completed an amendment to its credit facility to allow for the issuance of up to $300 million of unsecured senior notes.

Also, the mandatory repayment provision was revised to require that the net proceeds of the notes be used to prepay any term loans and then to repay revolver borrowings. Any remaining proceeds may be used for general corporate purposes.

Ferro is a Cleveland-based supplier of technology-based performance materials for manufacturers.

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