Axiall lifts amended and restated asset-based revolver to $600 million

By Toni Weeks

San Luis Obispo, Calif., Dec. 22 – Axiall Corp. entered into a second amendment and restatement of its asset-based revolving credit facility on Dec. 17, increasing the commitments to $600 million from $500 million, according to an 8-K filing with the Securities and Exchange Commission.

The amended and restated agreement extends the maturity date of borrowings to Dec. 17, 2019, which is subject to change if the maturity date of other specific debt is earlier than 18 days after Dec. 17, 2019.

The agreement also increases the advance rates in respect of eligible accounts receivable to 90% from 85% and in respect of eligible inventory to 75% from 70%.

Additionally, the borrowing base now includes foreign accounts receivable and packaging and shipping supplies.

Borrowings bear interest at Libor plus 150 basis points. If Axiall has not received a corporate family credit rating of at least Ba3 from Moody’s and BB- from S&P, the applicable margin will be 150 bps to 200 bps, with the exact margin based on average utilization. Similarly, the unused commitment fee will range from 25 bps to 37.5 bps, depending on if the ratings requirement has been satisfied.

The company will be subject to a fixed-charge coverage ratio of 1.10:1.00 if excess availability is less than $75 million for three consecutive business days.

U.S. borrowings under the facility will be guaranteed by each of the company’s existing and subsequently acquired or organized direct and indirect domestic subsidiaries. Canadian borrowings will be unconditionally guaranteed by each of the company’s existing and subsequently acquired or organized direct and indirect subsidiaries.

The credit agreement provides for voluntary prepayment of loans without premium or penalty other than customary breakage costs with respect to Libor loans.

The amendment was made with General Electric Capital Corp. as lender, export-related loan lender, swingline lender, administrative agent, co-collateral agent and co-syndication agent.

Wells Fargo Capital Finance, LLC is a co-collateral agent, co-syndication agent and a lender. Barclays Bank plc is documentation agent and a lender. GE Capital Markets, Inc. and Wells Fargo Capital Finance, LLC are co-lead arrangers and joint bookrunners.

Axiall is a chemicals and building products company based in Atlanta.

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