Tredegar entered into a new $400 million five-year, secured revolving credit facility. The new facility includes an accordion feature allowing for additional borrowings of up to $50 million under certain conditions.

The transaction was arranged by JPMorgan Chase as administrative agent and SunTrust Bank, Citizens Bank and PNC Bank, as co-syndication agents. It replaces the company’s existing $350 million credit facility which was due to expire in April 2017.

“We believe that our new credit facility provides us flexibility for business development activities and the ability to weather a cyclical downturn,” said Drew Edwards, Tredegar’s chief financial officer.

Under the new credit agreement, the company has access to funds at an interest rate on borrowings and commitment fees based on the company’s consolidated trailing four-quarter leverage ratio, subject to compliance with certain covenants and other conditions. The credit facility will be used for general corporate purposes.

Richmond, VA-based Tredegar is a manufacturer of plastic films and aluminum extrusions.