Intertape Polymer closed a new five-year, $600 million credit facility with a syndicated lending group led by Bank of America as administrative agent, sole lead arranger and sole bookrunner.

The new facility replaces the company’s previous $450 million credit facility that was due to mature in November 2019.

“We have made significant operational progress and improved our financial position since the execution of our previous credit facility in 2014. The new credit facility will provide us with increased capacity, better terms and more flexibility to execute the next phase of our growth strategy,” said Greg Yull, president and CEO of Intertape Polymer Group.

The credit facility consists of a $200 million term loan and a $400 million revolving credit facility with the term loan amortizing 35% over five years. The credit facility also includes an incremental accordion feature of $200 million, which will enable the company to increase the limit of this facility (subject to the credit agreement’s terms and lender approval) to $800 million if needed.

The facility matures on June 14, 2023 and bears an interest rate based, at the company’s option, on LIBOR, the Federal Funds Rate or Bank of America’s prime rate, plus a spread. The credit facility provides a more favorable covenant structure and increased flexibility to the company as compared to the previous credit facility.

The facility refinanced a majority portion of the company’s existing debt and is expected to finance capital expenditures, share repurchases, acquisitions, working capital and other general corporate activities going forward.

Based in Montreal and Sarasota, FL, Intertape Polymer Group develops, manufactures and sells a variety of paper and film based pressure sensitive and water activated tapes, polyethylene and specialized polyolefin films, woven coated fabrics and complementary packaging systems for industrial and retail use.