Schweitzer-Mauduit amends facility financial covenant with acquisition

By Marisa Wong

Morgantown, W.Va., Jan. 20 – Schweitzer-Mauduit International, Inc. entered into an amendment to its second amended and restated credit agreement dated Oct. 28, 2015 to conditionally increase the permitted net debt to EBITDA ratio, according to an 8-K filing with the Securities and Exchange Commission.

The increase will take effect once the company closes its acquisition of all of the equity interests in Conwed Plastics LLC.

The maximum net debt to EBITDA ratio will then be 4.25 to 1.00 for the four fiscal quarters prior to Dec. 31, stepping down to 4.00 to 1.00 for the quarter ending March 31, 2018, to 3.75 to 1.00 for the quarter ending June 30, 2018, to 3.50 to 1.00 for the quarters ending Sept. 30, 2018 and Dec. 31, 2018 and 3.00 to 1.00 after that.

The credit agreement provides for credit facilities totaling $1 billion, including a $650 million revolver and $350 million of term loans.

JPMorgan Chase Bank, NA is administrative agent for the lenders, JPMorgan Chase Bank, NA, Bank of America, NA, Fifth Third Bank, SunTrust Bank, AgFirst Farm Credit Bank, Citizens Bank, NA, MUFG Union Bank, NA, Citibank, NA, Farm Credit Bank of Texas, Farm Credit Mid America, PCA and Societe Generale.

Alpharetta, Ga.-based Schweitzer-Mauduit provides engineering solutions and produces advanced materials for the tobacco industry.

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