Resolution Performance Products amends loan

By Sara Rosenberg

New York, April 2 - Resolution Performance Products LLC amended its credit agreement, permitting the company to issue up to $175 million of senior second secured notes due 2010 as long as proceeds from the note offering are used to prepay the term loans outstanding under the facility.

Furthermore, under the amendment, the consolidated interest coverage ratio and the adjusted total leverage ratio covenants were eliminated, an adjusted bank leverage ratio covenant was added and the revolver was reduced to $75 million from $100 million, according to a filing with the Securities and Exchange Commission.

So far in 2003, the company has made a mandatory principal payment under the credit agreement of $6 million due to annual excess cash flow.

Resolution Performance Products is a Houston manufacturer and developer of epoxy resins and manufacturer of versatic acids and derivatives.

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