OMNOVA Solutions said it completed an amendment to its $200 million term loan credit facility ($195.5 million outstanding). Key changes in terms include a one-year extension of the facility maturity to May 2018 and a reduction in borrowing spreads of 1.25%.

Effective March 7, the new floating interest rate is 4.25%. The annual interest expense savings of the amended term loan facility is approximately $2.4 million at current LIBOR rates. The company will record a charge of approximately $1.5 million in the 2013 second quarter related to this transaction.

In addition to the term loan facility, OMNOVA’s long-term capital structure includes $250 million of senior notes with a coupon of 7.875% which matures in November 2018. The company’s liquidity position as of November 30, 2012 totaled $222.5 million which included $148.5 million of cash, cash equivalents and restricted cash, and $74 million of availability under an asset-based revolving credit facility.