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Westlake Chemical enters into new five-year $1 billion revolver
By Wendy Van Sickle
Columbus, Ohio, Aug. 24 – Westlake Chemical Corp. closed a new five-year $1 billion unsecured revolving credit agreement on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement was led by JPMorgan Chase Bank, NA as bookrunner, lead arranger and administrative agent.
Bank of America, NA and Wells Fargo Bank, NA acted as co-syndication agents, and Citibank, NA, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and PNC Bank, NA acted as co-documentation agents.
The new revolver replaces the company’s previous $400 million asset-based revolving facility dated July 17, 2014 with Bank of America, NA as agent.
Borrowings bear interest at Libor plus a margin ranging from 100 basis points to 175 bps, and the commitment fee ranges from 10 bps to 25 bps, both depending on ratings. The initial margin is 125 bps, and the initial commitment fee is 15 bps.
The credit agreement will mature on Aug. 23, 2021.
There is a $500 million accordion feature, a $150 million sublimit for letters of credit and a $50 million sublimit for swingline loans.
Proceeds are available for working capital and general corporate purposes for the company.
“We are pleased to have completed this agreement as it increases our company’s financial flexibility and provides the liquidity to fund our growth,” Albert Chao, Westlake’s president and chief executive officer, said in a news release. “This is a strong statement of support from our banks, and we appreciate their ongoing confidence in us.”
Westlake is a manufacturer and supplier of petrochemicals, polymers and building products and is based in Houston.
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