RLPC: Ashland to refinance revolver, repay term debt

NEW YORK Thu Feb 21, 2013 1:54pm EST

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NEW YORK Feb 21 (Reuters) - Specialty chemical provider Ashland Inc will be launching on Friday a $1.2 billion revolving credit facility that will refinance existing debt, sources told Thomson Reuters LPC.

Citigroup leads the deal. Bank of Nova Scotia, Bank of America Merrill Lynch, Deutsche Bank and PNC are to the right of Citigroup.

The company will use proceeds from a $2.3 billion note sale that priced today to repay $1.2 billion outstanding under the existing term loan A and $1.03 billion outstanding under the existing term loan B.

The company entered these loans on August 23, 2011, as part of its $3.2 billion acquisition of International Specialty Products and refinanced a credit agreement dated from March 2010.

The loans then included a $1 billion, five-year revolver, a $1.5 billion, five-year term loan A and a $1.4 billion term loan B. Drawn pricing on the revolver and TLA opened at 225bp over Libor. The revolver also pays a 40bp undrawn commitment fee. The TLB pays 275bp over Libor.

Bank of Nova Scotia led the deal.

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