Credit Suisse First Boston and National City Bank held a bank meeting July 25 for Cleveland-based chemical company Ferro's $900 million credit. The loan backs the $540 million acquisition of dmc2, OM Group's electronics materials, ceramics and pigments operations. It also refinances debt. The package consists of a $200 million, 364-day revolver that carries a 3/8% commitment fee, a $400 million, five-year revolver that has a 1/2% commitment fee and a $300 million six-month bridge loan. The out-of-the-box spread is LIBOR plus 2%. CSFB is the syndication agent and National City has the administration role. The credit is rated BBB-/Baa3. Officials at CSFB and National City declined to comment.
OM Group is selling dmc2 to help finance its $1.08 billion purchase of German chemical company Degussa Metals Catalysts Cerdec. CSFB and National City led a $650 million bank financing in May for OM Group. The credit was split into a $300 million seven-year term loan "B" and a $350 million nine-month asset sales bridge facility. Calls to Ferro were not returned.