Univar announces Re-pricing of Term Loan B Facility
Global chemical distributor Univar Inc. (Downers Grove, IL – United States) last week announced last week that it and its wholly-owned subsidiary, Univar USA Inc. (“Company”), have entered into an Amended Credit Agreement with Bank of America N.A. and other lenders to provide a new Term B-2 loan facility.
The aggregate principal amount is USD 2.2 bn. The loan replaces the Company’s previous U.S. Dollar Term Loan B and USD 175.6 mn of Euro loans outstanding, leaving EUR 82.7 mn of the original Euro Term B loan facility outstanding (“Amended Term Loan Facility”). The Amended Term Loan Facility reflects a 50 basis points reduction in the interest rate to LIBOR plus 2.75% from LIBOR plus 3.25% and a removal of the 1% LIBOR floor. The maturity date of July 2022 for the Amended Term Loan Facility remains unchanged.
According to Univar, the Amended Term Loan Facility will result in an USD 11.0 mn reduction of interest expense per year for the next five and a half years. The terms of the Euro Term B Loan facility remain unchanged. There was no material change to Univar’s total or secured leverage as a result of the borrowings under the New Term Loan Facilities, the statement said.
Source:Univar press release
HGE – DCG / 26.01.2017