Hexion expects its stock to be publicly traded after it emerges from Chapter 11 bankruptcy protection later this year, the US-based thermoset resin producer said on Monday.
That exit date could be 1 July, the company said in a lender presentation.
In connection to its plan to emerge from bankruptcy protection, Hexion seeks to raise the following:
– A $350m asset-based lending (ABL) revolving credit facility.
– A $1.2bn first-lien term loan, of which $600m is euro denominated.
– $450m of unsecured debt.
– $300m equity rights offering.
Hexion plans to spend the proceeds on repaying its debtor-in-possession (DIP) loan and repaying $1.38bn of first lien notes that date back before its bankruptcy. The money will also pay for working capital, fees and expenses.
Hexion said it filed for bankruptcy protection because of excessive debt, with a large chunk of it maturing next year.
Hexion makes epoxy resins and other thermoset resins.
The company filed for bankruptcy protection in US Bankruptcy Court, Delaware District Court. The case number is 19-10684.
Source: ICIS News
The separation is expected to be completed by early Q3, following the receipt of all relevant approvals, including final Board approval. Nouryon intends to reduce its own debt with proceeds received from a planned external financing by Nobian.
Trinseo became a producer of the resin when it acquired Arkema’s PMMA business. It announced that it closed on the €1.14bn deal earlier this month.
As part of the EU’s Single-Use Plastic Directive (SUPD), it will become mandatory for caps and lids to remain attached to all beverage containers up to three liters in capacity from 2024.