Nexeo Solutions, a chemicals and plastics distributor, entered into an amendment to its term loan credit facility.

The amendment reflects a 50 basis points reduction in the interest rate to LIBOR + 3.25% from LIBOR + 3.75% and provides a prepayment premium equal to 1% of the amount of the term loan applicable to certain repricing transactions occurring on or prior to 12 months from the effective date of the amendment.

According to a related 8-K filing, Bank of America served as administrative agent for the lender group.

According to Nexeo Solutions, the amendment will result in an estimated $3.2 million reduction to the company’s annual cash interest expense for each of the next five years, while all other terms remain unchanged.