Ashland and its bank group entered into an amendment to Ashland’s senior unsecured credit agreement, and the company’s wholly owned subsidiary Valvoline entered into a delayed-draw credit agreement for new senior secured bank facilities.

These agreements mark a significant milestone in Ashland’s previously announced plan to separate into two independent, publicly traded companies: Ashland Global Holdings, composed of Ashland Specialty Ingredients and Ashland Performance Materials, and Valvoline, composed of Ashland’s Valvoline business segment.

The Valvoline delayed-draw credit agreement provides for $1.325 billion in financing, consisting of a five-year secured senior revolving credit facility in an aggregate amount of $450 million, which includes a $100 million letter of credit sublimit and a five-year senior secured term loan facility in an aggregate principal amount of $875 million.

According to a related 8-K filing, the lender group was led by The Bank of Nova Scotia as administrative agent, swing line lender and L/C issuer. Citibank served as syndication agent. Deutsche Bank Securities, Goldman Sachs, JPMorgan Chase, PNC Capital Markets and U.S. Bank were co-arrangers and co-managers

The Valvoline delayed-draw credit agreement will be available for borrowings upon the transfer of the Valvoline business to Valvoline Inc. and upon the satisfaction of certain other conditions. Ashland expects to satisfy these conditions in the fall of 2016 in connection with other steps in the planned separation.

Covington, KY-based Ashland provides specialty chemical solutions to customers in a wide range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, personal care and pharmaceutical.