Nalco (NLC) Executes Long-term Refinancing Deal

May 15, 2009 9:42 AM EDT

Nalco Holding Company (NYSE: NLC) announced that its wholly owned subsidiary, Nalco Company, successfully completed a $1.25 billion refinancing that replaces the majority of a term loan due in November of 2010 and, along with cash on hand, will be used to retire $475 million of its senior notes otherwise due in November of 2011. The refinancing includes $750 million in new term loans due in 2016 and $500 million of new senior notes due in 2017. The arrangements also include a new five-year, $250 million revolving credit facility supplied by a consortium of 7 banks, replacing the revolving credit facility that would otherwise have expired in November of 2009.

Pricing on the new term loans was set at a rate of LIBOR plus 350 basis points, with a LIBOR minimum of 300 basis points, and sold at $97.50 per $100 of principal amount for a yield of just under 7%. The $500 million of senior unsecured notes issued in the high yield market carry a coupon of 8 1/4% and were priced to yield 8 5/8%.
Subscribe to EasyStockAlerts.com & Get real-time e-mail alerts when news hits your stocks!

Related Categories

Corporate News

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?