Alcoa successfully amended its $1.5 billion revolving credit agreement with improved terms for the company. The amendment will ease certain financial covenants to provide greater flexibility for the company in a range of areas, including expanded options for permitted debt and investments.

JPMorgan served as administrative agent for the lenders.

According to a related 8-K filing, the amended agreement extends the maturity date of the credit facility from November 1, 2021 to November 14, 2022, with certain extension rights at the discretion of each lender. The aggregate amount of commitments remains at $1.5 billion. The amended revolving credit agreement permits the borrower to, from time to time, request that the existing lenders (at their discretion) or new lenders provide one or more additional tranches of term loans or increase the aggregate amount of the revolving commitments, in an aggregate principal amount of up to $500 million.

“In our first year as an independent company, we’ve realized solid financial performance supported by favorable market conditions,” said William Oplinger, EVP and CFO. “The amendment to the revolving credit agreement is a recognition of our strengthened financial position, and the improved terms provide greater latitude to deliver on our strategic priorities to reduce complexity, drive returns and strengthen the balance sheet.”

Pittsburgh-based Alcoa is a global industry leader in bauxite, alumina and aluminum products, with a strong portfolio of value-added cast and rolled products and substantial energy assets.