CONSHOHOCKEN, PA — Quaker Houghton (NYSE: KWR) has refinanced $550 million in U.S. debt through a seven-year term loan, extending its repayment schedule to October 2033 and reducing required annual principal payments as the industrial process fluids company adjusts its capital structure.
The Conshohocken-based company completed the financing earlier this month through a new U.S. dollar-denominated Term Loan B facility that amends its existing credit agreement.
Proceeds from the transaction will be used to repay in full the outstanding U.S. term loans under that agreement, replacing existing borrowings with debt carrying a longer maturity and a revised repayment structure.
The new loan bears interest at the Secured Overnight Financing Rate, or SOFR, plus 175 basis points, equivalent to 1.75 percentage points above the benchmark rate.
Quarterly principal payments are set at 0.25% of the original $550 million loan amount, or approximately $1.375 million per quarter.
That schedule translates to $5.5 million in annual principal repayments, with the remaining balance due when the loan matures in October 2033.
The structure limits scheduled principal repayments during the loan’s seven-year term, leaving most of the borrowing outstanding until maturity.
Chief Executive Officer Joseph Berquist said the refinancing would give Quaker Houghton greater flexibility in managing its debt obligations and funding business investments.
“The completion of this Term Loan B provides greater flexibility in our capital structure by extending our debt maturity profile and reducing required annual debt payments,” Berquist said.
The transaction also supports the company’s stated objective of maintaining financial capacity for strategic growth initiatives while managing capital allocation.
JPMorgan Chase Bank, N.A., served as administrative agent for the financing.
Quaker Houghton supplies industrial process fluids used in manufacturing and other industrial operations worldwide.
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