RLPC-Clariant says agrees new terms for syndicated loan

LONDON, July 6 (Reuters) - Swiss speciality chemicals company Clariant AG (CLN.VX) has agreed an amendment on its 750 million Swiss francs ($690 million) syndicated loan.

"We have agreed with the banks on an amendment of the banking facility agreement that was part of the negotiation process on the convertible bond issued last week," Clariant spokesman Arnd Wagner told Reuters LPC on Monday.

"(The agreement) is not yet carved in stone because the final documentation is yet to take place," he said.

More than two thirds of Clariant's lenders have already agreed to the covenant amendment ahead of a final deadline this Wednesday, a banker close to the talks said.

The amendment will increase the covenant headroom and amend the definition of an interest cover covenant on the group's existing 750 million francs syndicated loan, the banker said.

In return for the amendment, the maker of pigments will reduce the size of the loan to 550 million francs and increase the interest margin to 275 basis points over LIBOR from around 30 basis points, the banker said.

Lenders agreeing to the changes will also receive a 60 basis points fee, with an extra 15 basis points if they commit a week before the final deadline.

Clariant would not comment.

The amendment was led by BNP Paribas, Citigroup, Commerzbank and UBS, a second banker close to the deal said.

Last week, the same bank group placed a 300 million franc bond offering that will convert into around 15 percent of Clariant's outstanding share capital.

Clariant tapped the syndicated loan market in 2005, when it appointed Citigroup, Commerzbank, HSBC and UBS to arrange a five-year 750 million Swiss franc revolving credit facility, according to Thomson Reuters LPC data. (Reporting by Zaida Espana; Editing by Dan Lalor) ($1 = 1.087 Swiss francs)