FMC approaches lenders to lower term B rate to Libor plus 175 basis points

By Sara Rosenberg

New York, June 8 - FMC Corp. went out to lenders on Tuesday afternoon with a repricing proposal of its $243 million term loan B as the company is hoping to lower the interest rate on the tranche to Libor plus 175 basis points from Libor plus 250 basis points, according to a market source.

Citigroup is the lead bank on the deal.

"They're looking for lender approval. It's not really syndicating unless people drop out," the source added.

Recommitments from lenders are due at the end of next week.

All other terms of the credit agreement would remain unchanged.

This is not the first time that FMC came to lenders with an amendment to lower pricing on its institutional term loan. In December 2003, the Philadelphia diversified chemical company successfully repriced its term loan to Libor plus 250 basis points, reducing the interest rate by 225 basis points from previous pricing.

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