Kaiser Aluminum Corporation Amends Credit Agreement with Wells Fargo Bank, National Association

Strategic Insights -

Kaiser Aluminum Corporation, a leading U.S. aluminum supplier, has entered into an amendment to its credit agreement with Wells Fargo Bank, National Association. The amendment modifies the existing credit agreement, originally dated October 30, 2019, to provide additional flexibility and extend the maturity date.

The amendment includes several key modifications, such as an extension of the maturity date from April 7, 2027 to March 1, 2028, or October 14, 2030, whichever is earlier. Additionally, the amendment allows for an increase in revolving commitments by up to $200 million plus an additional amount for a first-in-last-out (FILO) tranche. The amendment also increases asset sale capacity, with the Company able to borrow up to the lesser of $575 million and a borrowing base comprised of eligible accounts receivable, inventory, and other assets.

Key Takeaways:

  • The amendment extends the maturity date of the credit agreement from April 7, 2027 to March 1, 2028, or October 14, 2030, whichever is earlier.
  • The amendment allows for an increase in revolving commitments by up to $200 million plus an additional amount for a first-in-last-out (FILO) tranche.
  • The amendment increases asset sale capacity, with the Company able to borrow up to the lesser of $575 million and a borrowing base comprised of eligible accounts receivable, inventory, and other assets.
  • The amendment modifies the interest rate structure, with borrowings bearing interest at a rate equal to either a base rate or the secured overnight financing rate (SOFR), plus a specified variable percentage.
  • The amendment places restrictions on the ability of the Company and certain of its subsidiaries to grant liens, engage in mergers, sell assets, incur debt, and enter into sale and leaseback transactions among other things.
  • The amendment requires the Company and its subsidiaries to meet minimum availability thresholds to avoid restricting their fixed charge coverage ratio on a consolidated basis.

Statistics:

  • The amended credit agreement has a borrowing base of up to $575 million.
  • The credit agreement bears interest at a rate equal to either a base rate or the secured overnight financing rate (SOFR), plus a specified variable percentage.
  • The amendment allows for an increase in revolving commitments by up to $200 million plus an additional amount for a first-in-last-out (FILO) tranche.
  • The amendment increases asset sale capacity, with the Company able to borrow up to the lesser of $575 million and a borrowing base comprised of eligible accounts receivable, inventory, and other assets.

Sources:

  • Form 8-K, UNITED STATES SECURITIES AND EXCHANGE COMMISSION, October 16, 2025.