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FMC enters into $2 billion term loan, restates $1.5 billion revolver
By Jennifer Chiou
New York, Oct. 14 – FMC Corp. entered into an up to $2 billion senior term loan facility and amended and restated its $1.5 billion revolving credit facility to facilitate its agreement to acquire all the outstanding equity of Cheminova A/S, according to an 8-K filing with the Securities and Exchange Commission.
In September, the company said it would finance its $1.8 billion purchase of the Auriga Industries A/S subsidiary from committed financing already in place.
FMC entered into the new credit agreements on Friday.
The term loan has a termination date five years after it is drawn for the acquisition.
The its $1.5 billion revolver now expires on Oct. 10, 2019. There are two one-year extension options.
Citibank, NA is the administrative agent. Citigroup Global Markets Inc. and Bank of America Merrill Lynch acted as joint lead arrangers with Bank of America, NA as syndication agent.
The filing stated that the revolving credit agreement provides for a $1.5 billion revolving credit facility, $300 million of which is available for letters of credit and $50 million of which is available for swing loans. There is an option to increase the aggregate amount to $2.25 billion.
Borrowings will bear interest at Libor plus 79.5 basis points to 130 bps under the revolver and Libor plus 100 bps to 150 bps under the term loan.
The initial commitment fee is 15 bps per year for the term loan and 12.5 bps per year for the revolver.
“This financing commitment is an important step in our acquisition and integration of Cheminova,” FMC president, chief executive officer and chairman Pierre Brondeau said in a news release.
“We were gratified by the strong support provided by our 26 banks, which substantially oversubscribed the syndication.”
As previously reported, the transaction is expected to close in early 2015.
FMC is a diversified chemical company based in Philadelphia. Cheminova is a multinational crop protection company based in Denmark.
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