Westlake Chemical announces plan to Refinance Debt
10 Jan '06
3 min read
Vertically integrated fabricated products producer Westlake Chemical Corporation announced that it has commenced a plan to refinance its debt.
The plan includes: the retirement of the company's 8 3/4 Senior Notes due 2011, of which $247 million in principal amount are outstanding; the issuance of new senior notes due 2016 in the principal amount of $250 million; the repayment of the company's term loan of approximately $9 million; and an amendment to the company's revolving credit facility to increase the commitment from $200 million to $300 million.
Albert Chao, Westlake Chemical's Chief Executive Officer and President, stated, 'This is a positive step for Westlake. Interest rates remain low by historical standards and as a result of these actions, they expect to reduce their interest expense going forward, as well as gain more flexible and favorable conditions for implementing their growth strategy in the future.'
The company concluded the amendment to the revolving credit facility on January 6. company will issue a redemption notice for $180 million principal amount of the 8 3/4 Senior Notes due 2011, to be redeemed on February 8 at a redemption price of 100 plus accrued but unpaid interest, plus a make-whole premium as provided in the indenture governing these notes, and expects to call for redemption the remaining $67 million principal amount of these notes after completion of the issuance of the new senior notes.
The further execution of the refinancing plan, including the call of the remainder of the existing senior notes and the issuance of new senior notes, is contingent on, among other things, satisfactory market conditions and no material adverse change in the company's business or operations.
marketing@alchempro.com
