Chemtura Corporation, debtor-in-possession (Pink Sheets: CEMJQ) (the “Company” or “Chemtura”), today announced its election to extend the escrow period to November 25, 2010 for the proceeds from its recent $455 million offering of senior notes and $295 million term loan.
As previously disclosed, on August 27, 2010, Chemtura completed its private placement offering of $455 million in aggregate principal amount of 7.875% senior notes due 2018 (the “Senior Notes”). The net proceeds of the Senior Notes offering were funded into a segregated escrow account, pursuant to an escrow agreement dated as of August 27, 2010 (the “Notes Escrow Agreement”), among Chemtura, U.S. Bank National Association, as trustee (the “Trustee”) and Wells Fargo Bank, National Association, as escrow agent (the “Escrow Agent”), together with cash sufficient to fund the redemption of the Senior Notes. On October 19, 2010, Chemtura notified the Trustee and the Escrow Agent that it had elected to extend the Initial Escrow End Date (as defined below) to November 25, 2010, and deposited with the Escrow Agent $3,020,583.86, representing the amount of interest that would accrue, including original issue discount, on the funded amount of the Senior Notes from October 26, 2010 (the “Initial Escrow End Date”) up to, but excluding, December 3, 2010.
On August 27, 2010, Chemtura also entered into the Senior Secured Term Facility Credit Agreement (the “Term Loan Agreement”), among Chemtura, Bank of America, N.A., as administrative agent (the “Administrative Agent”), the other agents party thereto and the Initial Lenders and other Lenders party thereto. Under the Term Loan Agreement, the Lenders advanced an aggregate principal amount of $295 million (the “Term Loan”), funded at 99% of such principal amount. The proceeds of the Term Loan were funded into a segregated escrow account (the “Escrow Account”), pursuant to the escrow agreement dated as of August 27, 2010 (the “Term Loan Escrow Agreement”), among Chemtura, the Administrative Agent and the Escrow Agent, together with a deposit by Chemtura of an additional amount sufficient to fund the interest expected to accrue on the Term Loan for the period from the August 27, 2010 to October 26, 2010, and the amount of the arrangers’ fees and expenses. On October 20, 2010, Chemtura notified the Administrative Agent and the Escrow Agent that it had elected to extend the Initial Escrow End Date to November 25, 2010, and will deposit with the Escrow Agent the amount of interest that would accrue on the Term Loan from the Initial Escrow End Date up to, but excluding, November 25, 2010.
About the Company
Chemtura, with 2009 sales of $2.3 billion, is a global manufacturer and marketer of specialty chemicals, agrochemicals, and pool, spa and home care products. Additional information concerning Chemtura is available at www.chemtura.com.
This press release includes “forward-looking statements.” These statements include but are not limited to our plans, objectives, expectations and intentions and other statements that contain words such as “expects,” “contemplates,” “anticipates,” “plans,” “intends,” “believes” and variations of such words or similar expressions that predict or indicate future events or trends, or that do not relate to historical matters. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. There can be no assurance that our beliefs or expectations will be achieved. Actual results may differ materially from our beliefs or expectations due to economic, business, competitive, market and regulatory factors. Important factors that could cause actual outcomes to differ materially from those in the forward-looking statements include the following: our ability to satisfy any conditions precedent to funding our anticipated exit financing facilities, risks and uncertainties associated with our Plan, including our ability to successfully complete a restructuring of our balance sheet, and other factors described in our periodic reports, including Item 1A Risk Factors of our Quarterly Report on Form 10-Q for the period ended June 30, 2010.