Balchem entered into a new credit agreement with its lenders in the form of a senior secured revolving credit facility. JPMorgan Chase and Bank of America acted as co-lead arrangers for the new facility, leading a syndicate that included six additional banks.

The new revolver is due in 2023 and provides up to $500 million in borrowing. The company used the initial proceeds to repay $211 million in outstanding balance on its senior secured term loan A, due May 2019.

“Our new revolving credit agreement enhances our strong financial profile and provides increased flexibility,” said Ted Harris, Balchem president, CEO and chairman. “We are very pleased with the strong interest from the lenders, with the well over-subscribed facility further demonstrating the strength of our financials. The available funds from this new credit facility, combined with our strong cash flow, strengthen our ability to execute on our growth plans.”

Borrowings under the new facility initially bear interest at an annual rate of LIBOR plus 1.125%, which may change based on the company’s leverage ratio. The revolver initially carries an unused fee of 0.175% annually, which may also change based on the company’s leverage ratio.

Balchem provides customized food and beverage ingredient systems and specialty-packaged chemicals for use in the healthcare and pharmaceutical industries through four business segments: human nutrition and health, animal nutrition and health, specialty products and industrial products.