Flowserve, a provider of flow control products and services for the global infrastructure markets, amended and restated its $800 million revolving credit facility and added a new $300 million term loan facility with Bank of America and certain other lenders. The senior credit facility includes a sustainability-linked option, which provides the opportunity to further lower the company’s overall borrowing costs, based upon an agreement with BofA Securities, as sustainability coordinator, regarding certain Flowserve environmental, social and governance targets.

Additionally, as part of the senior credit facility, Flowserve has incorporated a $300 million, five-year funded term loan facility that includes participation from a minority-owned depository institution headquartered in Flowserve’s home state of Texas.

“We appreciate the support of our banking partners in completing this new credit facility that strengthens our capital structure, ensures substantial liquidity and enhances our financial flexibility as we continue to execute on our strategic goals,” Amy Schwetz, senior vice president and CFO at Flowserve, said.

“We are especially pleased to incorporate a Sustainability-Linked option as part of the senior credit facility. Flowserve’s purpose of ‘creating extraordinary flow control solutions to make the world better for everyone’ dictates a commitment to continuous improvement in our ESG initiatives, which are core to our company. We do this through our commitments to reduce our own environmental footprint and add value to the communities we serve, and importantly, by applying our deep expertise in flow control products, services and knowledge to support our customers on their own energy transformation journey. Linking our cost of capital to our ESG goals provides a compelling opportunity to do well for our company and shareholders as we do well for the world,” Schwetz said.

The senior credit facility was entered into with a syndicate of lenders arranged by BofA Securities as joint lead arranger and joint bookrunner. Additionally, JPMorgan Chase Bank, Mizuho Bank and BNP Paribas Securities also served as joint lead arrangers and joint bookrunners. The revolving credit facility is available for general corporate purposes, and the term loan facility’s proceeds are intended to refinance upcoming debt maturities.