Crompton solicits consents to amend notes

New York, May 16 - Crompton Corp. said it has begun soliciting consents from holders of its 9 7/8% senior notes due 2012 and senior floating-rate notes due 2010 to amend the indenture so that it can incur up to $600 million of debt under its credit facility instead of the current limit of $300 million.

The proposed amendment has various conditions including closing of the company's merger with Great Lakes Chemical Corp.

"Increasing our credit facility to $600 million will provide greater financial flexibility to Crompton following our pending merger with Great Lakes," said Karen Osar, Crompton's chief financial officer, in a news release. "We believe that a credit facility of this size is both adequate and appropriate for Crompton's normal liquidity requirements following the merger.

"Crompton has a variety of alternatives available to it to ensure access to adequate liquidity for operating purposes post-merger, including a securitization of available receivables at both Great Lakes and Crompton. While these alternatives could satisfactorily meet Crompton's liquidity needs, we believe the enhanced flexibility and administrative ease of one larger credit facility provide the best solution for the combined company, which is why we have undertaken this consent solicitation."

The consent solicitation runs through 5 p.m. ET on May 31.

The Middlebury, Conn.-based specialty chemical company is offering a consent fee of $3.75 per $1,000 principal amount.

Morgan Stanley & Co. Inc. (800 624-1808 or call collect 212 761-1864) and Credit Suisse First Boston LLC (800 820-1653 or call collect 212 538-0652) are solicitation agents. Global Bondholder Services Corp. is information agent (866 470-4500 or call collect 212 430-3774).

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