Westlake Chemical borrows entire $1 billion amount under revolver

By Sarah Lizee

Olympia, Wash., March 20 – Westlake Chemical Corp. borrowed the full $1 billion under its revolving credit facility due July 24, 2023 on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The company said the borrowing was made “out of an abundance of caution” and to ensure it maintains ample financial flexibility in light of current uncertainty in the global markets caused by the coronavirus pandemic.

Westlake said it does not expect to use the proceeds for any liquidity needs, but it may use the proceeds in the future for general corporate purposes.

The company expects to repay the borrowings when the uncertainty in the global markets subsides.

At Dec. 31, the company had $728 million in cash and cash equivalents and no borrowings outstanding under the credit agreement. The company noted that it had sufficient liquidity prior to borrowing the funds, and, other than the $250 million of 3.6% senior notes that mature on July 15, 2022, it has no meaningful maturities due until 2026.

Based in Houston, Westlake Chemical is an international manufacturer and supplier of petrochemicals, polymers and building products.

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