Albemarle enters into $1 billion five-year revolving credit facility

By Sarah Lizee

Olympia, Wash., June 27 – Albemarle Corp., Albemarle Global Finance Co. SCA and Albemarle Europe Sprl entered into a $1 billion five-year unsecured revolving credit facility on June 21 with Bank of America, NA as administrative agent and swingline lender, according to an 8-K filing with the Securities and Exchange Commission.

The revolver matures on June 21, 2023 and has two one-year extension options.

The company can add one or more tranches of term loans and/or increase total commitments under the facility up to an additional $500 million.

Borrowings bear interest at Libor plus a margin ranging from 91 basis points to 150 bps, depending on the company’s credit ratings. At closing, interest was Libor plus 112.5 bps.

The new facility also permits the issuance of letters of credit and swingline loans.

The facility requires that the consolidated leverage ratio be not more than 3.5 to 1 as of the end of any fiscal quarter, subject to adjustments relating to an acquisition where the consideration includes cash proceeds from issuance of funded debt in excess of $500 million.

The new credit facility replaces the revolver that was due to mature on Feb. 7, 2020. The prior credit facility was undrawn as of June 20 and was terminated on June 21.

Albemarle is a Baton Rouge, La., specialty chemicals company.

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