CHS expands revolver by $500 million, inks new $600 million term loan

By Wendy Van Sickle

Columbus, Ohio, Sept. 11 – CHS Inc. amended and restated its five-year revolving credit agreement, lifting its capacity to $3 billion, and entered into a new 10-year $600 million term loan agreement on Sept. 4, according to an 8-K filed with the Securities and Exchange Commission.

The amendment expands the revolving facility’s previous capacity of $2.5 billion and extends its maturity to Sept. 4, 2020 from June 26, 2018.

CoBank ACB and Wells Fargo Securities LLC acted as co-bookrunners of the revolver; CoBank ACB, Wells Fargo Securities, LLC; Bank of America, NA; BMO Harris Bank, NA; Rabobank Nederland, New York Branch; Mizuho Bank, Ltd.; J.P. Morgan Securities LLC; the Bank of Tokyo-Mitsubishi UFJ, Ltd.; Sumitomo Mitsui Banking Corp; SunTrust Bank; and U.S. Bank, NA, were the lead arrangers; CoBank ACB the administrative agent, and Wells Fargo Bank, NA the syndication agent.

CoBank, ACB acted as lead arranger, bookrunner and administrative agent in the term loan.

The revolver has a $700 million accordion feature, bringing total potential commitments to $3.7 million. It has a $200 million letter-of-credit facility.

Borrowings bear interest at Libor plus an applicable margin of 90 basis points to 145 bps, based on leverage ratio.

Proceeds of the revolver will be used for working capital, general corporate purposes, including capital expenditures, and issuances of letters of credit.

The term loan bears interest at Libor plus 150 bps to 200 bps, also based on leverage.

Proceeds will be used for working capital needs and general corporate purposes.

The company may draw from the term loan on up to 10 occasions until Sept. 4, 2016, after which the company may request $25 million to $100 million of new term loans.

The revolver and term loan agreements contain financial covenants including a minimum consolidated net worth and a maximum consolidated debt ratio.

No borrowings were drawn under the revolver or the term loan at closing.

CHS is an Inver Grove Heights, Minn.-based integrated agricultural company.

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