Kaiser Aluminum lifts credit facility to $575 million, extends to 2027

By Rebecca Melvin

Concord, N.H., April 12 – Kaiser Aluminum Corp. and some subsidiaries increased their credit facility by $200 million to $575 million under a third amendment to the credit agreement dated Oct. 30, 2019, according to an 8-K filed with the Securities and Exchange Commission.

Up to $50 million of the borrowing amount may be used for letters of credit.

The April 7 amendment also extended the maturity date of the facility to April 7, 2027 from Oct. 30, 2024, removed eligible equipment from the borrowing base and as collateral and updated benchmarks to reference SOFR instead of Libor.

Borrowings under the facility accrue interest at SOFR plus 125 basis points to 150 bps, determined by remaining borrowing availability and, in some cases, a fixed margin.

There is also a commitment fee of 25 bps multiplied by the result of the amount of revolver commitments, less the average revolver usage during the preceding month.

The amended facility may be increased up to $775 million and modified subject to lender approval to create certain environmental, social and governance benchmarks.

Wells Fargo NA is administrative agent and, together with JPMorgan Chase Bank NA, joint lead arranger and joint book manager of the facility.

Syndication agents are Bank of America NA and Barclays Bank plc. U.S. Bank NA is documentation agent and lender, with Goldman Sachs Bank USA also a lender.

The aluminum producer is based in Lake Forest, Calif.

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