FMC Corporation finalized an expected amendment to its existing revolving credit agreement. The amendment raises the maximum leverage ratio covenant to 6.5 times immediately through June 30, 2024, after which the maximum leverage ratio will step down in increments to 3.75 times at Sept. 30, 2025, and remain at that level thereafter. The interest coverage ratio covenant was similarly adjusted over this time period.
“We appreciate the unanimous support of our bank group and their recognition of the need for temporary covenant relief in light of the unprecedented downturn in the global crop protection market,” Andrew Sandifer, FMC EVP and CFO, said. “With today’s amendment, we now have ample headroom and duration that is well beyond what we believe will be required as we navigate the current challenges to free cash flow. We expect strong cash generation in 2024, which will be prioritized to paying down debt and delivering the dividend to shareholders.”
According to an 8K filed with the SEC, Citibank is the administrative agent for the credit agreement.
