Compass Minerals expects $700 million refinancing to cut interest cost

By Wendy Van Sickle

Columbus, Ohio, April 21 – Compass Minerals refinanced its existing senior secured credit facilities with a new $400 million senior secured term loan and a $300 million senior secured revolver, according to a Thursday press release.

Both facilities mature July 1, 2021 and carry an interest rate of Libor plus 150 basis points, based on the company’s current leverage ratio. The margin above Libor can range from 125 bps to 200 bps.

JPMorgan Chase Bank, NA is the as administrative agent.

The new credit facilities, which were entered into on Wednesday, replace $471 million in term loans and a $125 million revolver.

“Increasing our revolving credit facility and decreasing our term loan provides us with increased financial flexibility and is expected to reduce interest expense going forward,” Jamie Standen, Compass Minerals treasurer, said in the release.

Proceeds were used to repay Compass’ existing credit agreement borrowings. Proceeds from the revolver may also be used for ongoing working capital requirements and other general corporate purposes, including distributions.

Compass Minerals is an Overland Park, Kan.-based producer of minerals for deicing, agricultural and industrial applications.

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