INVISTA returned to market last week to refinance and amend its $1.475 billion credit facility. Proceeds from the credit cut the spread on the company's existing term debt by 50 basis points to LIBOR plus 2 1/2%. "The amendment really is in the form of seeking approval for the company to issue two new tranches of debt that pay off the existing tranches of debt," explained Jay Voncannon, the company's treasurer. "Basically, raise new funds at a lower rate to pay off the existing debt." The credit comprises a $200 million "A" loan and $1.275 billion "B" loan
J.P. Morgan and Deutsche Bank lead the credit, which was put in place April 30 to back Koch Industries' $4.2 billion acquisition of INVISTA, formerly DuPont Textiles & Interiors (LMW, 2/23). "The primary reason is that we believe that the market terms on our credit facility need to be revised to be consistent with current market conditions," Voncannon said. "The market has tightened and as a result interest rates have gone down plus our performance has been very positive since the acquisition of the business from DuPont."