Last week, Bank of America was set to allocate Westlake Chemical Corp.'s $100 million, fixed asset-secured term loan after attracting more than $400 million in commitments to the tranche. The hybrid loan kicks off the petrochemical and plastics producing company's refinancing efforts, which also include a $400 million senior unsecured notes deal and a $200 million senior secured asset-based revolver. A banker familiar with the transactions said the bonds will be priced this week. The term loan is priced in the LIBOR plus 4-41/2% range. The revolver is scheduled to hit the market in the beginning of August, the banker noted, adding that pricing is set at LIBOR plus 21/2% for the tranche. A B of A official declined to comment.
Houston-based Westlake received BB/Ba2 ratings for the revolver and term loan, while the notes were rated B+/Ba3. The term loan is secured by essentially all of the company's domestic property, plant and equipment and intangibles, states Moody's Investors Service. Borrowings under the revolver are limited to 85% of eligible receivables and 70% of eligible inventory. Ruth Dreessen, senior v.p. and cfo of Westlake, did not return calls.