Celanese Announces Plans to Refinance Debt and Repurchase Shares
Published March 17th, 2007
Celanese Corporation (NYSE: CE), a global hybrid chemical company, today announced a comprehensive plan to refinance its existing senior credit facilities, senior subordinated notes and senior discount notes and to repurchase approximately $400 million of its common stock.
Upon completion, the proposed refinancing plan will reduce the Company’s debt by over $200 million, lower net interest expense, extend debt maturities and improve flexibility. In addition, the plan allows the Company to modify and simplify its global corporate and capital structure. In connection with the refinancing, the Company plans to:
Establish a new Credit Facility of up to $3,628 million, consisting of $2,280 million of U.S. dollar-denominated and €400 million of Euro-denominated new Term Loan B due 2014, a $600 million Revolving Credit Facility terminating in 2013 and a $228 million Credit-Linked Revolving Letter of Credit Facility terminating in 2014
Retire its existing Credit Facility of up to $2,450 million, which consists of $1,622 million Term Loan B due 2011, $600 million Revolving Credit Facility terminating in 2009 and $228 million Credit-Linked Revolving Facility terminating in 2009
Tender for all the outstanding 9.625% Senior Subordinated Notes due 2014 with an aggregate outstanding principal amount of approximately $796 million and 10.375% Senior Subordinated Notes due 2014, with an aggregate outstanding principal amount of approximately €130 million (“Senior Subordinated Notesâ€) and seek consent from the holders of those notes to eliminate substantially all covenants from the related indentures
Tender for all the outstanding 10.0% Senior Discount Notes due 2014 and 10.5% Senior Discount Notes due 2014, with an accreted value of approximately $430 million as of March 31, 2007 (the “Discount Notes†and, together with the Senior Subordinated Notes, the “Notesâ€) and seek consent from the holders of those notes to eliminate substantially all covenants from the related indentures
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