J.P. Morgan Chase is preparing to launch this week syndication of a $300 million refinancing credit for Millennium Chemicals Inc. A banker familiar with the deal said the loan would be structured as a five-year, $150 million revolver and a $150 million, five-year, institutional tranche. Pricing is expected to be LIBOR plus 2% on the bank portion and 21/2 % on the term loan, said the banker.
Additionally, the London and Red Bank, N.J.-based chemicals company is looking to raise $250 million through a 144A senior note offering. The proceeds will refinance the company's $500 million revolving credit that matures in July. The banker commented that the company is going through tough conditions at the moment, with high production costs and cautious customers. Officials at Millennium did not return calls. Leverage, which is 3.5 to 4 times, is quite high, he added.