Materion amends credit agreement in connection with H.C. Starck buy

Chicago, Nov. 1 – Materion Corp. amended and restated its credit agreement for the fourth time on Oct. 27 in connection with the $380 million acquisition of all of the shares of H.C. Starck Inc., according to an 8-K filed with the Securities and Exchange Commission.

The credit agreement provides for a $300 million delayed-draw term loan. The term facility has been fully drawn to fund a portion of the purchase price for the acquisition.

It also extends the maturity date for the revolver, carries forward the maximum leverage ratio covenant to accommodate the acquisition and provides additional flexibility for future strategic acquisitions.

The $375 million revolver matures on Oct. 27, 2026.

Based on the leverage ratio, the company will pay between Libor plus 125 basis points and 225 bps for borrowings. The commitment fee moves between 15 bps and 40 bps.

The rate starts with the fourth tier: Libor plus 200 bps and a commitment fee for 35 bps.

JPMorgan Chase Bank, NA is listed as the administrative agent.

Wells Fargo Bank, NA and Bank of America, NA are the co-syndication agents.

KeyBank NA is the documentation agent.

JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC and BofA Securities, Inc. are joint bookrunners and joint lead arrangers.

Materion is a Mayfield Heights, Ohio-based supplier of highly engineered advanced enabling materials to global markets.

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