Celanese extends $1.14 billion and €203.9 million of term loans

By Sara Rosenberg

New York, Sept. 28 - Celanese Corp. ended up extending about $1.14 billion of U.S. term loan debt and about €203.9 million of euro term loan debt by 2½ years to 2016, according to a market source.

Initially, the company was looking to push out the maturity on $1 billion of its term loan borrowings.

The extended term loan is priced at Libor plus 300 basis points, compared to Libor plus 150 bps on the non-extended.

During the negotiation process, pricing on the extended term loan was flexed up from initial talk of Libor plus 275 bps, and 101 soft call protection for one year was added to the tranche.

In connection with the amendment and extension, the company will be repaying $800 million of its term loan borrowings.

Funds for the paydown are coming from $600 million of notes that the company recently priced at par to yield 6 5/8% and cash on hand. The notes were upsized from $400 million, resulting in the paydown being upsized.

Deutsche Bank and Bank of America are leading the amend and extend transaction.

Lenders were offered a 5 bps consent fee.

Celanese is a Dallas-based chemical company.

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