Sherwin-Williams sign replacement five-year $2.25 billion credit facility

By Mary-Katherine Stinson

Lexington, Ky., Aug. 31 – Sherwin-Williams Co., Sherwin-Williams Canada Inc. and Sherwin-Williams Luxembourg Sarl entered into a new five-year $2.25 billion credit agreement on Aug. 30 with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The borrowers may increase the size of the facility up to an additional $750 million subject to the discretion of each lender and may request letters of credit up to $250 million.

Based on a seven-tier pricing grid dependent on ratings, interest will be between SOFR plus 75 basis points and 162.5 bps and the commitment fee rate will be between 6 bps and 22.5 bps.

The new agreement matures on Aug. 30, 2027 with two one-year optional extensions.

Financial covenants require that Sherwin-Williams’ consolidated leverage ratio may not exceed 3.75x on the last day of any quarter which may be temporarily increased to 4.25x following a qualified acquisition.

Citibank, NA, Wells Fargo Bank, NA, BofA Securities, Inc., JPMorgan Chase Bank, NA and U.S. Bank NA, are the joint lead arrangers and joint bookrunners.

Wells Fargo Bank, NA is the syndication agent.

Co-documentation agents are Bank of America, NA, JPMorgan Chase Bank, NA and U.S. Bank NA.

Proceeds may be used for general corporate purposes, including to finance working capital requirements.

The new agreement replaced and terminated the company’s existing credit agreement dated June 29, 2021.

Sherwin-Williams is a Cleveland-based maker of paints and related products.

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