Momentive Performance firms discount on $175 million term loan at 95

By Sara Rosenberg

New York, March 23 - Momentive Performance Materials Inc. finalized the original issue discount on its $175 million senior secured term loan (B) due May 5, 2015 at 95, the wide end of the 95 to 95½ talk, according to a market source.

Pricing on the loan is Libor plus 350 basis points with no Libor floor, the same as on the existing roughly $925 million term loan due 2015.

J.P. Morgan Securities LLC, BMO Capital Markets Corp., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the bookrunners on the deal.

Proceeds will be used to repay existing term loans maturing Dec. 4, 2013.

The new loan is being done under the credit agreement's accordion feature.

Recently, Momentive attempted to extend its term loan maturing on May 5, 2013 to March 4, 2015 and its term loan maturing on May 5, 2015 to March 3, 2017. However, the company failed to reach the minimum principal amount of $25 million for the extension, so the transaction was canceled.

Momentive is a Columbus, Ohio-based producer of thermoset resins.

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