Swiss specialty textile chemicals producer Archroma said it has entered into a senior secured credit agreement that provides for credit facilities totaling to around $515 million.
According to an Archroma press release, the credit facilities comprise of a $75 million multi-currency revolving credit facility, a $220 million senior secured term loan and a €200 million senior secured term loan.
Bank of America Merrill Lynch International Limited and HSBC Bank plc acted as global coordinators, book runners and mandated lead arrangers for the senior secured credit agreement.
Other banks include, ICICI Bank UK plc which acted as book runner and mandated lead arranger, while Credit Suisse AG, UBS Switzerland AG, Mizuho Bank and Itau BBA International acted as lead arrangers.
The new credit facilities will be used to refinance Archroma's existing debt, as well as to support the acquisition of BASF’s textile chemicals business.
“In a report issued on June 15, 2015, Moody’s, the investor service agency, assigned a B2 corporate family rating to SK Spice Holding Sarl, the parent company of the Archroma group,” the company said.
“Moody’s also assigned a B2 rating to the loan and credit package and the outlook on all ratings by Moody's is stable,” Archroma noted.
Moody has stated in its report that the stable outlook reflects its expectation that Archroma will maintain adequate liquidity, smoothly integrate the BASF textile chemicals business.
Standard & Poor’s has assigned a preliminary ‘B’ long-term rating, with stable outlook to SK Spice Holding Sarl or Archroma and a ‘3’ recovery rating to the term loans.
"The successful refinancing and ratings issued by Moody's and Standard & Poor’s are consistent with Archroma's current size, revenue and profitability," CFO at Archroma Roland Waibel said.
"Archroma continues to move forward on its path to becoming the preferred chemicals and dyes supplier in our industries through organic growth and acquisitions," Waibel added.
"We wanted to show an objective rating from leading agencies to allow our financial partners, as well as our customers and suppliers, to share our confidence in Archroma and its ability to deliver on its ambitions," he observed.