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Wells Fargo Agents $450MM Credit Facility for Innophos

December 23, 2016, 07:03 AM
Filed Under: Specialty Industries

Innophos Holdings announced that it has entered into a new senior secured credit facility with a group of bank lenders, increasing the company's borrowing capacity by $125 million to $450 million, while reducing interest rates for the next five years. This credit facility effectively replaces the senior credit facility entered into on December 21, 2012, as subsequently amended.

Han Kieftenbeld, Senior Vice President and Chief Financial Officer of Innophos, commented, "This new arrangement allows us to extend our credit facility for the next five years under favorable terms while also providing us with additional capacity and flexibility to support our strategic growth plans."

The new Innophos credit facility features:

  • A $450 million revolving credit line with a letter of credit subfacility of up to $20 million.
  • Interest at London interbank offered rate (LIBOR) or base rate plus an initial margin of 175 basis points (bps) for LIBOR and 75 bps for base rate loans. The margin is linked to overall company leverage as computed under the facility and will range from 100-225 bps for LIBOR and 0-125 bps for base rate loans. 
  • An optional feature allowing the borrowers to request, subject to the lenders' agreement, an additional $150 million increase in the revolving line with terms set in advance under the facility. 
  • Customary affirmative and negative covenants for a senior facility of this kind, including those governing total leverage and interest coverage. 
  • Collateral given by Innophos covering substantially all assets of its U.S. operations and a pledge of certain of its foreign holding company stock.

The offering was led by Wells Fargo Bank, National Association, as administrative agent, and Bank of America, N.A. and SunTrust Bank as co-syndication agents.

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