Ripplewood $165 million credit facility to launch Monday

By Sara Rosenberg

New York, June 18 - Ripplewood Phosphorus LLC will hold a bank meeting Monday afternoon for a proposed $165 million senior secured credit facility, according to a market source.

UBS Warburg is the lead bank on the deal.

The facility consists of a $25 million five-year revolving credit facility with price talk of Libor plus 300 basis points and a $140 million seven-year term loan with price talk of Libor plus 325 basis points, the source said.

Proceeds will be used to help fund Ripplewood Holdings LLC's acquisition of Akzo Nobel's phosphorus chemicals business for €230 million free of cash and debt.

Standard & Poor's assigned a B+ rating to the credit facility on Thursday with a recovery rating of 4. The outlook is stable.

S&P said the ratings on Ripplewood Phosphorus reflect a modest sales base, a narrow product line, the cyclicality of end markets, and aggressive debt leverage. These negatives overshadow the company's strong position in the production of organophosphorus flame retardants and expected debt reduction over the intermediate term.

Ripplewood Phosphorus is a Chicago producer of organophosphorus flame retardants and functional fluids.

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