FAIRLAWN, Ohio, March 11, 2013 /PRNewswire/ -- OMNOVA Solutions Inc. (NYSE: OMN) today announced the successful completion of 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 $74.0 million of availability under an asset-based revolving credit facility.
This press release includes "forward-looking statements" as defined by federal securities laws. These statements, as well as any verbal statements by the Company in connection with this press release, are intended to qualify for the protections afforded forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectation, judgment, belief, assumption, estimate or forecast about future events, circumstances or results and may address business conditions and prospects, strategy, capital structure, sales, profits, earnings, markets, products, technology, operations, customers, raw materials, financial condition, and accounting policies, among other matters. Words such as, but not limited to, "will," "may," "should," "projects," "forecasts," "seeks," "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "optimistic," "likely," "would," "could," and similar expressions or phrases identify forward-looking statements.