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Contact:
Jodi Allen (Investor Relations)
(973) 357-3283
Cytec Announces Amendment to
Credit Agreement
Stock Contribution to Pension Master Trust
Woodland Park, New Jersey, May 15, 2009 – Cytec Industries Inc.
(NYSE:CYT) announced today that it has successfully amended its
existing revolving credit agreement with its lenders and
Citibank, N.A., as administrative agent. The maximum amount
available under the facility remains at $400 million, of which
approximately $107 is currently borrowed, and maturity of the
facility remains June 2012. The Amendment increases the maximum
permitted Total Consolidated Debt to Consolidated EBITDA ratios
through March 31, 2010 and also excludes up to $100 million of
cash restructuring charges from EBITDA as it pertains to this
covenant. Additionally, new debt incurred to prepay or refinance
all or a portion of the $250 million outstanding 5.5% senior
notes due October 1, 2010 will be excluded from Total
Consolidated Debt. “While the borrowing costs under the new
facility will increase in line with current market conditions,”
said Vice President and Chief Financial Officer, David Drillock,
“we are pleased that we can now consider alternatives for early
refinancing of our 2010 senior notes without worrying about the
effects of these actions on our bank covenants.”
In addition, on May 13, the Company contributed a combined
amount of approximately 1.2 million shares of Cytec stock to the
four plans in its U.S. pension master trust. This contribution
will increase the funded status of these plans while
significantly reducing the cash contributions from the company.
Mr. Drillock added, “The completion of these previously
announced actions, combined with our investment grade ratings,
provide Cytec with increased financial flexibility to navigate
this uncertain economic environment while simultaneously
executing on our extensive cost reduction initiatives.”
Additional details can be found on the Form 8-K that the Company
is filing today with the Securities and Exchange Commission.
Corporate Profile
Cytec Industries Inc. is a global specialty chemicals and
materials company focused on developing, manufacturing and
selling value-added products. Our products serve a diverse range
of end markets including aerospace, adhesives, automotive and
industrial coatings, chemical intermediates, inks, mining and
plastics. We use our technology and application development
expertise to create chemical and material solutions that are
formulated to perform specific and important functions in the
finished products of our customers.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained
herein, statements contained in this release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Achieving the results
described in these statements involves a number of risks,
uncertainties and other factors that could cause actual results
to differ materially, as discussed in Cytec’s filings with the
Securities and Exchange Commission.
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