Georgia Gulf to wait until early 2009 to consider refinancing options for credit facility

By Jennifer Lanning Drey

Portland, Ore., Nov. 20 - Georgia Gulf Corp. has been forced by the tightened credit markets to put off looking at its options for refinancing its credit facility until the first two quarters of 2009, Paul Carrico, chief executive officer of Georgia Gulf, said Thursday.

"Unfortunately our ability to be in a position to do that directly coincided with the developments in the finance markets, and it's not any big secret that that's a very challenging situation right now," Carrico said during a presentation at the Bank of America Credit Conference in Orlando, Fla.

In the meantime, Georgia Gulf is focused on cash flow generation and is seeking to move forward in a position of having enough cash to cover capital expenditures and interest payments, he said.

The company's September announcement that it would suspend its dividend was made with that goal in mind, he said.

Georgia Gulf will also look to pay down debt where possible and plans to continue to adjust its cost structure to match market conditions.

The company expects softness in the housing market to last through 2009.

Atlanta-based Georgia Gulf manufactures chlorovinyls, aromatics and vinyl-based building and home improvement products.

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