US Hexion expects to go public after leaving bankruptcy protection
June 11, 2019
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