OM Group Inc. secures $250 million revolving loan
OM Group Inc. (NYSE: OMG) of Cleveland said it has entered into a new $250 million secured revolving credit facility with a syndicate of lenders, led by PNC Bank. The new credit facility replaces the previous $100 million facility, which was due to expire in December. OM Group, a maker of industrial chemicals and materials, said the new, three-year revolving credit facility includes an "accordion" feature under which the facility may rise to a maximum of $325 million, subject to certain conditions and approval of those lenders whose commitments would be increased.
The company has the option to specify that interest be calculated based either on LIBOR plus 2.25% to 3.0%, or a base rate plus 1.25% to 2.0%. Under the new credit facility, OM Group borrowed $150 million, which repaid loans previously incurred to fund the EaglePicher Technologies LLC acquisition completed on Jan. 29.
"We are pleased to have this new credit facility in place, which will provide additional liquidity and flexibility to meet our strategic growth objectives," said Joseph M. Scaminace, OM Group chairman and CEO, in a statement. "The ability to secure this funding from our lending partners represents their confidence in our growth prospects and management's transformation strategy."
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