FMC to hold bank meeting Tuesday for $550 million credit facility

By Sara Rosenberg

New York, Sept. 20 - FMC Corp. is scheduled to hold a bank meeting Tuesday for a new $550 million credit facility, according to market sources. Citigroup and Bank of America are the lead banks on the loan.

The loan consists of a $250 million three-year revolver with an interest rate of Libor plus 262.5 basis points and a $300 million five-year term loan B with an interest rate of Libor plus 325 basis points, market sources said.

Security is anticipated to be a first priority lien on 100% of the stock of certain domestic subsidiaries, 65% of the capital stock of certain foreign subsidiaries, certain intercompany indebtedness owed to the company and its subsidiary guarantors and all of the company's and its subsidiary guarantors' accounts receivable, inventory, deposit accounts, investment property and intellectual property, according to a filing with the Securities and Exchange Commission.

The company is also scheduled to offer $300 million of senior secured notes due 2009 as part of its refinancing plan. Salomon Smith Barney and Bank of America Securities LLC are the lead banks on the bond offering.

Proceeds from the loan and notes will be used to: repay upcoming debt maturities, including its $99.5 million of 7.125% medium-term notes due November 2002 and $160.5 million of 6.375% debentures due September 2003; repay all borrowings and terminate the existing revolver and accounts receivable securitization facility; replace with cash collateral certain standby letters of credit and surety bonds; and pay fees and expenses, the news release said.

Closing on the credit facility and on the notes is contingent upon each other and will occur concurrently, according to the filing.

FMC is a Philadelphia, Pa. diversified chemical company.

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