Ferro gets commitment for $700 million credit facility

By Sara Rosenberg

New York, March 30 - Ferro Corp. has received a commitment for a new $700 million secured credit facility, according to a company news release.

National City Bank and Credit Suisse are the lead banks on the deal.

The facility consists of a $300 million five-year multi-currency revolver and a $400 million six-year term loan.

Revolver borrowings will be used for working capital and general corporate purposes and the term loans, if drawn, will be used to refinance the existing debt.

The new facility will replace the company's existing revolver that was due to expire in September 2006. Ferro obtained a waiver from the lenders in its existing revolver to extend reporting requirements for up to 90 days for the 2004 period and to the expiration of the facility for the periods 2005 and 2006. The extension will give the company time to put the new facility in place.

"I'm pleased we were able to reach agreement on these new financing commitments," said Thomas Gannon, chief financial officer, in the release.

"It assures the company of adequate liquidity to meet the anticipated needs of our operations and provides assurance of financing in the event of any accelerated refunding of our existing long-term debt."

Ferro is a Cleveland-based producer of performance materials for industry, including coatings and performance chemicals.

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