Chase Corporation Announces Amended and Restated Credit Agreement
August 12 2021 - 4:44PM
Business Wire
Increases available borrowing limit to $200
Million, with ability to increase an additional $100 Million
Retains term loan conversion option feature
Chase Corporation (NYSE American: CCF), a global specialty
chemicals company that is a leading manufacturer of protective
materials for high-reliability applications across diverse market
sectors, has entered into a new amended and restated credit
agreement with Bank of America, N.A., as administrative agent, and
with participation from Wells Fargo Bank, N.A., PNC Bank, N.A. and
JPMorgan Chase Bank, N.A.
The new credit agreement was entered into to amend, restate and
extend the Company’s preexisting credit facility, which was
previously set to mature on December 15, 2021. Moreover, the
agreement provides for additional liquidity to finance
acquisitions, working capital and capital expenditures, and for
other general corporate purposes. The new agreement increases the
Company’s borrowing capabilities to $200 million (up from $150
million under the old facility), with the ability to request an
increase in this amount by an additional $100 million at the
individual or collective option of any of the lenders (up from $50
million under the old facility).
Adam P. Chase, President and Chief Executive Officer, stated
that, “Under this new credit agreement, we obtained an increased
revolving credit facility which will continue to position us with
adequate debt capital and available cash to execute our inorganic
growth plans. In this competitive market, having immediate access
to funds gives us an advantage in our acquisition program, putting
us in the position to close transactions to fulfill our strategic
initiatives. Working with our lenders, led by Bank of America,
along with Wells Fargo, PNC and JP Morgan, we have established a
great structure to meet our needs going forward.”
Similar to the previous agreement, the applicable interest rate
for the new revolving facility and new term loan is based on the
effective London Interbank Offered Rate (LIBOR) plus a range of
1.00% to 1.75%, depending on the consolidated net leverage ratio of
Chase and its subsidiaries. The new credit agreement has a
five-year term with interest payments due at the end of the
applicable LIBOR period (but in no event less frequently than the
three-month anniversary of the commencement of such LIBOR period)
and principal payment due at the expiration of the agreement, July
27, 2026. The new credit agreement contains provisions that may
replace LIBOR as the benchmark index under certain circumstances.
In addition, the Company may elect a base rate option for all or a
portion of the new revolving facility, in which case interest
payments shall be due with respect to such portion of the new
revolving facility on the last business day of each quarter.
Michael J. Bourque, Treasurer and Chief Financial Officer added
that, “Timing in the credit market was favorable so we accelerated
our renewal process. We may also elect to convert all or a portion
of any balance outstanding on the new revolving facility into a new
term loan twice during the term of the new revolving facility
giving us maximum flexibility with our debt structure going
forward.”
Additional information and the agreement can be found on the
Company’s website in the SEC filings section.
About Chase Corporation
Chase Corporation, a global specialty chemicals company that was
founded in 1946, is a leading manufacturer of protective materials
for high-reliability applications throughout the world. More
information can be found on our website https://chasecorp.com/
Cautionary Note Concerning Forward-Looking Statements
Certain statements in this press release are forward-looking.
These may be identified by the use of forward-looking words or
phrases such as “believe”; “expect”; “anticipate”; “should”;
“planned”; “estimated” and “potential”, among others, and include
statements relating to the Company’s potential future acquisitions
and the Company’s ability to comply with the covenants under the
credit agreement. These forward-looking statements are based on
Chase Corporation’s current expectations. The Private Securities
Litigation Reform Act of 1995 provides a “safe harbor” for such
forward-looking statements. To comply with the terms of the safe
harbor, the Company cautions investors that any forward-looking
statements made by the Company are not guarantees of future
performance and that a variety of factors could cause the Company's
actual results and experience to differ materially from the
anticipated results or other expectations expressed in the
Company's forward-looking statements. The risks and uncertainties
which may affect the operations, performance, development and
results of the Company's business include, but are not limited to,
the following: uncertainties relating to economic conditions;
uncertainties relating to customer plans and commitments; the
pricing and availability of equipment, materials and inventories;
technological developments; performance issues with suppliers and
subcontractors; economic growth; delays in testing of new products;
the Company’s ability to successfully integrate acquired
operations; the effectiveness of cost-reduction plans; rapid
technology changes; the highly competitive environment in which the
Company operates; as well as expected impact of the coronavirus
disease (COVID-19) pandemic on the Company's businesses. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date the statement was
made.
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version on businesswire.com: https://www.businesswire.com/news/home/20210812005871/en/
Investor & Media Contact: Michael Cummings or Jackie
Marcus Alpha IR Group Phone: (617) 982-0475 E-mail:
CCF@alpha-ir.com or Shareholder & Investor Relations Department
Phone: (781) 332-0700 E-mail: investorrelations@chasecorp.com
Website: www.chasecorp.com
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