Ashland Inc. Enters New Credit Agreement

Strategic Insights -

Ashland Inc., a global leader in specialty chemical solutions, announced its entry into a new credit agreement with several major lenders. The agreement provides for a five-year senior unsecured revolving credit facility of $1.2 billion and a five-year senior unsecured term loan facility of $1.1 billion. A portion of the proceeds from the term loan facility was used to prepay Ashland's outstanding loans under its existing credit agreement. The new credit agreement will provide Ashland with significant working capital and flexibility to fund its business operations and strategic initiatives.

Key Takeaways:

  • Ashland Inc. has entered into a new credit agreement with a group of major lenders, providing a five-year senior unsecured revolving credit facility of $1.2 billion and a five-year senior unsecured term loan facility of $1.1 billion.
  • The new credit agreement will allow Ashland to repay its outstanding loans under its existing credit agreement and provide working capital for its business operations and strategic initiatives.
  • Proceeds from the term loan facility were also used to repurchase a portion of Ashland's 3.000% Senior Notes due 2016 and to fund certain underfunded pension obligations.
  • Ashland will have approximately $1.128 billion of availability under the new revolving credit facility, which can be used for ongoing working capital and other general corporate purposes.
  • The new credit agreement will provide Ashland with significant flexibility and financial stability as it continues to execute its business strategy and pursue growth opportunities.

Statistics:

  • $1.2 billion: The size of the new credit agreement's revolving credit facility.
  • $1.1 billion: The size of the new credit agreement's term loan facility.
  • $250 million: The letter of credit sublimit under the revolving credit facility.
  • $100 million: The swing line loan sublimit under the revolving credit facility.
  • As of June 23, 2015, approximately $1.128 billion of availability under the new revolving credit facility.

Sources:

  • Ashland Inc. (2015, June 23). News Release. Retrieved from Thomson Reuters ONE via COMTEX
  • Ashland Inc. (2015, June 23). Current Report on Form 8-K. Retrieved from Securities and Exchange Commission
  • Comtex SmarTrend Alert (2015, June 19). SmarTrend Alert Indication. Retrieved from Comtex News Network Inc.