Momentive Specialty extends maturity of portion of revolver debt

By Jennifer Chiou

New York, March 7 - Lenders under Momentive Specialty Chemicals Inc.'s senior secured credit facilities elected to extend the maturity of about $171 million of existing third incremental revolving facility commitments to Dec. 3, 2014 from Feb. 3, 2013, according to an 8-K filing with the Securities and Exchange Commission.

After giving effect to the extension, Momentive will have about $29 million of revolving facility commitments due on Feb. 3, 2013 and $171 million of revolving commitments maturing on Dec. 3, 2014.

The lenders also elected to extend $19 million of existing term loans maturing on May 5, 2013 to March 4, 2015 and roughly $18 million of existing term loans maturing on May 5, 2015 to March 3, 2017, but the filing stated that the term loans that were elected to be extended are not eligible for extension because no tranche reached the minimum principal amount of $25 million required under the facilities.

As a result, the net proceeds of the previously announced $450 million senior secured notes offering, together with cash on hand, will be used to repay about $454 million of existing term loans maturing on May 5, 2013.

The company added that $925 million of existing term loans maturing on May 5, 2015 will remain outstanding.

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

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