Olin enters replacement $350 million term loan, $1.2 billion revolver

By Marisa Wong

Los Angeles, Oct. 12 – Olin Corp. completed a refinancing of its senior unsecured credit agreement dated July 16, 2019 by entering into a new senior unsecured credit agreement on Oct. 11 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The replacement credit agreement provides Olin with a senior unsecured term loan in an aggregate principal amount of up to $350 million and a senior unsecured revolver with aggregate commitments in an amount equal to $1.2 billion.

The company is permitted to add any of its wholly owned subsidiaries as additional borrowers under the revolver.

The replacement credit facilities are scheduled to mature on Oct. 11, 2027.

The term loan will require principal amortization payments that will be payable in quarterly installments beginning with the fiscal quarter ending March 31, 2023 and ending with the fiscal quarter ending Dec. 31, 2024, at a rate of 0.625% per quarter initially, increasing to 1.25% per quarter.

The credit facilities generally provide for borrowings in multiple currencies at interest rates equal to SOFR, Saron, CDOR or Euribor plus, in each case, a margin ranging from 137.5 basis points to 187.5 bps, depending on the company’s leverage ratio.

The replacement credit facilities include financial maintenance covenants that require the company to maintain a consolidated interest coverage ratio of not less than 3.00 to 1.00 as of the end of each fiscal quarter beginning with the fiscal quarter ending on Dec. 31 and maintain a consolidated net leverage ratio of no more than 3.75 to 1.00 as of the end of each fiscal quarter beginning with the fiscal quarter ending on Dec. 31, 2022; provided that, in connection with any material acquisition, the company may elect (no more than two times) to increase the consolidated net leverage ratio to 4.25 to 1.00 for the four quarter period following such acquisition.

The term loan was fully drawn at closing.

Term loan proceeds were used to refinance the loans and commitments outstanding under the existing credit agreement. Proceeds of the revolver will be used for working capital and other general corporate purposes and was also used to refinance the loans outstanding under the existing credit agreement.

Upon prepayment, the existing credit agreement was terminated on Oct. 11.

Amendments

Also on Oct. 11, the company executed a 12th amendment to its amended and restated credit agreement with PNC Bank, NA as administrative agent related to the Industrial Development Authority of Washington County series 2010A bonds and series 2010B bonds, the Mississippi Business Finance Corp. series 2010 bonds and the Industrial Development Board of the County of Bradley and the City of Cleveland, Tenn., series 2010 bonds.

The 12th amendment, among other things, replaces Libor provisions with SOFR provisions and amends some covenants to be consistent with the covenants contained in the replacement credit agreement.

In addition, the company completed on Oct. 11 a ninth amendment to the receivables financing agreement with Olin Finance Co., LLC as borrower and PNC Bank as administrative agent.

Among other things, the ninth amendment increases the facility limit to $425 million, replaces Libor provisions with SOFR provisions and extends the scheduled termination date of the receivables financing agreement to Oct. 14, 2025.

Olin is a Clayton, Mo.-based global manufacturer and distributor of chemical products and a U.S. manufacturer of ammunition.

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