Innospec adds $110 million term loan due 2020 at Libor plus 170 bps

By Wendy Van Sickle

Columbus, Ohio, Dec. 16 – Innospec Inc. amended and restated its credit agreement to add a $110 million term loan on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement, originally dated Dec. 14, 2011, will continue to provide for a $200 million revolving credit facility.

Proceeds of the term loan will be used to fund Innospec’s acquisition of assets from Huntsman Investments (Netherlands) BV.

Initial interest for both the revolver and term loan is Libor plus 170 basis points, with the margin to range from 120 bps to 245 bps, depending on the company’s ratio of total net debt to EBITDA.

Both tranches mature on Nov. 6, 2020.

The term loan has an $11 million repayment installment due Dec. 28, 2017, a $16.5 million installment due Dec. 28, 2018 and a $22 million installment due Dec. 28, 2019, with the outstanding balance due at maturity.

Barclays Bank plc, Credit Suisse (Switzerland) Ltd., Royal Bank of Scotland plc, Lloyds Bank plc, Wells Fargo Bank NA and U.S. Bank NA are the mandated lead arrangers, Lloyds is the facility agent, and Barclays is the document coordinator.

Innospec is a Littleton, Colo.-based specialty chemicals company.

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