Materis seeks to change debt

Wendel-backed Materis, a speciality chemicals company, is reportedly seeking to change the covenants on its EUR2bn debt.

According to reports, the company, which recently proposed a new business plan to its lenders, is seeking to relax its loan repayment schedule. More specifically, the company is seeking to delay the amortising payments on the EUR300m tranche A debt.

Materis is offering lenders a 25 basis points fee, with additional 12.5 points offered for lenders who respond promptly. But since the company is doing well creditors might seek more, especially as the originally leverage on the debt was debt was particularly low at 130 bps.

The company, which was purchased by Wendel in 2006 for EUR2.07bn. Materis produces speciality chemicals for the construction sector, as well as in decorative paints, mortar, calcium aluminates and adjuncts for concrete and cement.

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