WestRock adds $1 billion delayed-draw term loan under credit agreement

By Marisa Wong

Los Angeles, Aug. 24 – WestRock Co. entered into an amendment on Aug. 18 to its credit agreement dated July 7 with Wells Fargo Bank, NA as administrative agent to provide for an up to $1 billion unsecured delayed-draw term loan, according to an 8-K filing with the Securities and Exchange Commission.

The loan is available in a single draw through May 31, 2023.

Any loans drawn will mature on Aug. 18, 2025, but the maturity date may be extended by one year.

Borrowings bear interest at term SOFR (subject to a credit spread adjustment of 10 basis points) plus an applicable margin that will fluctuate between 87.5 bps and 150 bps based on the company’s corporate credit ratings or leverage ratio, whichever yields a lower applicable margin at the time.

Wholly owned subsidiary WRKCo Inc. is borrower under the credit agreement. The delayed-draw loan is guaranteed by the company and some of its other subsidiaries.

Proceeds from the new loan, if drawn, will finance the company’s recently announced acquisition of the remaining ownership interest in Grupo Gondi or be used for working capital and general corporate purposes.

WestRock is a corrugated packaging company based in Atlanta.

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