Olin and its wholly owned subsidiaries Olin Canada and Blue Cube Spinco entered into a second amendment agreement with Wells Fargo as administrative agent to increase the aggregate principal amount of term loans to $1.375 billion and the revolving credit facility commitments to $600 million.
The agreement amended and restated the company’s amended and restated credit agreement dated October 5, 2015, under which Spinco originally borrowed term loans in an aggregate principal amount of $1.35 billion and the lenders made available a revolving credit facility in an aggregate principal amount of $500 million.
JPMorgan Chase and Bank of America served as syndication agents. Citibank, TD Bank, PNC, The Bank of Nova Scotia, The Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking served as documentation agents. Wells Fargo Securities JPMorgan and Merrill Lynch, Pierce, Fenner & Smith served as lead arrangers and lead bookrunners.
In addition, the maturity dates for the term loan facility and the revolving credit facility were extended from October 5, 2020 to March 9, 2022.
Spinco’s borrowings under the term loan facility are guaranteed by the company, while obligations under the credit agreement are unsecured.
Borrowings under the credit agreement will bear interest at a per annum rate equal to a “base rate” or “Eurodollar rate”, as selected by the applicable borrower, plus an interest rate spread determined by reference to a pricing grid based on the company’s total leverage ratio.
Borrowings under the term loan facility were used, together with the net proceeds of a senior notes offering and cash on hand, to refinance the term loans outstanding under the existing term loan facility and to prepay in full the term loans outstanding under the SMBC credit agreement.