Chemours amends credit agreement covenants to enhance liquidity

By Wendy Van Sickle

Columbus, Ohio, Sept. 28 – The Chemours Co. adjusted some covenants Friday under the credit agreement it entered into on May 12 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The changes give the company enhanced liquidity to implement its transformation plan and strengthen its financial position, according to the filing.

The amendment modifies the definition of consolidated EBITDA, used only for calculating financial maintenance covenants in the credit agreement, to include cost savings benefits from restructuring and other initiatives on a pro forma basis. The benefits that can be added back are limited to:

• $115 million for any four fiscal-quarter-period ending on or prior to June 30, 2016; and

• $80 million for any four-fiscal-quarter period ending after June 30, 2016.

The amendment also adjusts the fixed dollar annual dividend basket to:

• $106 million for the fiscal year ending Dec. 31; and

• $22 million for each of the fiscal years ending Dec. 31, 2016, and Dec. 31, 2017.

Wilmington, Del.-based Chemours’ businesses include titanium technologies based around the white pigment titanium dioxide, fluoroproducts and chemical solutions aimed at the gold production, oil refining, agriculture, industrial polymers and other industries.

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