Daily News: September 27, 2017

JPMorgan Agents $850MM Multicurrency Facility for Newmarket


Newmarket closed a new $850 million multi-currency credit facility with JPMorgan as administrative agent. The revolving credit facility is available until September 22, 2022.

According to a related 8-K filing, Bank of America and PNC Bank were co-syndication agents. Citibank, DBS Bank and U.S. Bank served as co-documentation agents.

The credit agreement provides for a $850 million, multicurrency revolving credit facility, with a $150 million sublimit for multicurrency borrowings, a $75 million sublimit for letters of credit and a $20 million sublimit for swingline loans. It includes an expansion feature, which allows the company to request to increase the aggregate amount of the revolving credit facility or obtain incremental term loans in an amount up to $425 million.

Loans made under the revolving credit facility will bear interest, at the borrower’s option, at a rate per annum equal to the ABR plus the applicable rate, solely in the case of loans denominated in U.S. dollars to the company, or the adjusted LIBOR plus the applicable rate. “ABR” is the greatest of  the rate of interest publicly announced by the administrative agent as its prime rate, the NYFRB rate from time to time plus 0.5% and the adjusted LIBOR for a one month interest period plus 1%.

Concurrently, the company terminated its previous credit agreement dated October 28, 2014 with JPMorgan Chase Bank as administrative agent; Bank of America and PNC Bank as co-syndication agents and Citizens Bank and U.S. Bank as co-documentation agents, which provided for a $650 million unsecured credit facility and was set to expire on October 28, 2019. There was approximately $24.5 million outstanding indebtedness under the former credit agreement and the company was not obligated to pay any early termination or prepayment penalties.