Rockwood Plans to Use Cash and Raise New Tranche of Term Loan A Under Senior Secured Credit Facility to Redeem Outstanding Notes
Rockwood Holdings, Inc. (NYSE: ROC) today announced that its subsidiary, Rockwood Specialties Group, Inc., plans to use cash on hand and raise a new tranche of term loan A under its existing senior credit facility to redeem all of its outstanding senior subordinated notes, consisting of € 250.1 million in aggregate principal amount of 7.625% euro-denominated notes and $200 million in aggregate principal amount of 7.5% dollar-denominated notes. The notes are due on November 15, 2014. The new term loan is expected to be in the amount of $350.0 million and have a maturity of five years.
Commenting on the action, Seifi Ghasemi, Rockwood chairman and chief executive officer, said, “This new term loan and the repayment of all outstanding notes are consistent with our stated objective of reducing our debt levels and annual interest expense.”
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.