Albemarle gets $750 million five-year revolver at Libor plus 100 bps

By Toni Weeks

San Luis Obispo, Calif., Feb. 7 - Albemarle Corp. and Albemarle Global Finance Co. SCA entered into a $750 million five-year revolving unsecured credit facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The new facility matures on Feb. 7, 2019. The company can request twice, but not more than once in any 12-month period, that the maturity date be extended for an additional one-year period.

The company may also request up to five times during the term of the credit facility to increase commitments by up to an additional $250 million.

Borrowings initially bear interest at Libor plus 100 basis points. The margin can range from 90 bps to 150 bps based on credit ratings.

The new facility permits some of the company's domestic subsidiaries to borrow from the credit facility from time to time. Borrowings by Albermarle Global Finance, the Belgian borrower, will be denominated in currencies other than U.S. dollars.

Under the terms of the agreement, the company's consolidated leverage ratio (funded debt to EBITDA) may not be more than 3.5:1 as of the end of any fiscal quarter.

Bank of America, NA is the administrative agent, swingline lender and letter-of-credit issuer for the facility, which replaces the company's existing undrawn credit agreement. That facility was set to mature on Sept. 22, 2016 and was terminated Feb. 7.

Baton Rouge-based Albemarle is a manufacturer of polymers and fine chemicals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.