Intertape Polymer Group entered into a five-year, $600 million credit facility pursuant to an amendment to its existing credit agreement with a syndicated lending group led by Bank of America as administrative agent and BofA Securities, BMO Capital Markets, JPMorgan Chase Bank, TD Bank and Capital One as joint lead arrangers and joint bookrunners. The credit facility amends and extends the company’s previous $600 million credit facility that was due to mature in June 2023.
“IPG is a structurally different business today than it was five years ago,” Greg Yull, president and CEO of Intertape Polymer Group, said. “An important but often overlooked aspect of our fundamentals is the conservative capital structure that we have established, which served us extremely well through the uncertainty of 2020. This new credit agreement further solidifies our strategy with a flexible framework at attractive terms to support our expansion and growth plans in 2021 and beyond.”
The credit facility consists of a $600 million revolving credit facility and includes an incremental accordion feature of $300 million, which will enable the company to increase the limit of this facility (subject to the credit agreement’s terms and lender approval) to $900 million if needed. The credit facility matures on June 12, 2026, and bears an interest rate that is based, at Intertape Polymer Group’s option, on LIBOR (or a successor rate), the Federal Funds Rate or Bank of America’s prime rate, plus a spread. The credit facility is expected to finance capital expenditures, business acquisitions, working capital, share repurchases and other general corporate activities.