In a move to reduce costs, extend maturities and improve flexibility, OMNOVA Solutions refinanced its term loan facility and senior secured revolving credit facility and redeemed its 7.875% senior notes due 2018 on November 1, 2016.

The amendment to the company’s term loan facility provides for a new seven-year $350 million term loan facility, the proceeds of which will be used to refinance OMNOVA’s existing $189 million of term loans and to redeem all $150 million in aggregate principal of the company’s outstanding 7.875% senior notes due 2018 on November 1, 2016.

According to a related 8-K filing, the lender group was led by Deutsche Bank, New York branch, as administrative agent and collateral agent.

Concurrently, OMNOVA renewed its senior secured ABL revolving credit facility, extending its termination date from December 2017 to August 2021 and adjusting the amounts available for borrowing to $90 million from $100 million, with the ability to borrow an additional $50 million upon the satisfaction of certain requirements. Borrowing spreads under the facility have been reduced by 0.25%.

According to a related 8-K filing, JPMorgan Chase was the lender under the ABL amendment. At the time of the transaction, OMNOVA had no balances related to its revolving credit facility.

“This debt refinancing will provide significant interest savings to OMNOVA and gives us plenty of liquidity to operate our business, while increasing our flexibility to address strategic actions that will allow OMNOVA to grow,” said Paul DeSantis, OMNOVA Solutions’ SVP CFO. “Key provisions include no pre-payment penalties after six months and the ability to increase borrowings with the lender’s agreement.”