Hexion may issue $700 million notes due 2018, must first amend loans

By Angela McDaniels

Tacoma, Wash., Jan. 12 - Hexion Specialty Chemicals, Inc. is seeking amendments to its credit facilities that, among other things, would allow it to issue $700 million principal amount of senior secured notes due 2018, according to an 8-K filing with the Securities and Exchange Commission.

The amendments would also allow for additional issuances of senior notes or loans, so long as an agreed-upon amount of the proceeds is used to prepay loans under the credit facilities, and allow for future issuances of additional debt - which may include debt secured on a junior basis with the credit facilities or unsecured debt - in an amount not to exceed the amount available under the incremental credit facilities.

If the amendments are successfully obtained, the amount available under the incremental credit facilities would be reset to $200 million.

Hexion is based in Columbus, Ohio, and provides thermoset technologies and specialty products to the wood and industrial markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.