Celanese Corp. (CE) is seeking to reduce the rate on about $970 million of loans after the U.S. chemicals maker cut its debt to the lowest since 2005.
The company is proposing to pay 200 basis points to 225 basis points, or 2 to 2.25 percentage points, more than benchmark rates on its term loan C, according to two people with knowledge of the deal, who asked not to be identified because the financing is private. The facility due October 2016 comprises portions in dollars and euros and pays an interest margin of 275 basis points.
Celanese, which makes vinyl acetate and processes natural gas and coal into ethanol, reported net debt of $1.98 billion at the end of June, the lowest since March 2005, the Dallas, Texas-based company said in a statement on July 18.
Deutsche Bank is coordinating the repricing process which requires responses from lenders today, the people said.
W. Travis Jacobsen, a spokesman for Celanese, declined to comment on the financing.
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