W.R. Grace & Co. cut the rate it is paying on a $900 million loan to support its emergence from bankruptcy, according to a person with knowledge of the transaction, Bloomberg News reported yesterday. The company will pay interest at 2.25 percentage points more than the London interbank offered rate on the debt that includes a $200 million portion denominated in euros, compared with 2.5 percentage points more than the lending benchmark initially proposed. The loans will have a 0.75 percent minimum on Libor. Grace, which filed for chapter 11 protection in 2001 to deal with 100,000 asbestos-related injury claims, has said it anticipates emerging from bankruptcy on Jan. 31. Last month, the Columbia, Md.-based company said that it would pay lenders $129 million, plus interest from Dec. 31, in addition to distributions under its reorganization plan, according to a regulatory filing.
