PHILADELPHIA (Aug. 10, 2010)—Chemtura Corp. said it is planning to offer $450 million in aggregate principal amount of unsecured senior notes due 2018.
The proposed offering is part of Chemtura's exit financing package in line with its Chapter 11 plan of reorganization, if the plan is confirmed by the U.S. bankruptcy court. A hearing is scheduled for Sept. 16.
The company also is planning to arrange a senior term loan facility of $300 million and enter into a $275 million “senior asset-based revolving credit facility for working capital and general working purposes,” Chemtura said.
The net proceeds of the notes offering will be put into a segregated escrow account until the company's plan of reorganization is confirmed by the bankruptcy court, Chemtura said, adding that if the plan is confirmed the proceeds will be used to make payments and fund the company's emergence from Chapter 11 proceedings.
Chemtura Corp. is a global manufacturer of specialty chemicals, including urethanes and antioxidant/ultraviolet plastic additives. The company reported sales of $2.3 billion in 2009.