Sensient Technologies secures $400M term loan facility with CoBank
What's the deal? Sensient Technologies (NYSE: SXT) has secured an unsecured delayed-draw term loan facility of up to $400 million, with CoBankDealroom has a profile for this one. Try Dealroom →, ACB acting as administrative agent.
The company entered the credit agreement on June 18, 2026. It will use the proceeds to refinance existing debt and fund working capital and general corporate needs.
Why now? The facility lets Sensient draw funds in up to five advances over 15 months, with all outstanding amounts due five years from the closing date.
CoBank already serves as a lender under Sensient's existing credit agreement, dated June 13, 2025, making it a natural partner for this refinancing.
What could go wrong? The agreement requires Sensient to maintain a net leverage ratio of no more than 3.50 to 1.00 and an interest coverage ratio of at least 3.00 to 1.00.
Interest costs hinge on the company's leverage. Borrowings carry rates from a base rate plus 0.625% to 1.000%, or a SOFR rate plus 1.625% to 2.000%, depending on Sensient's net leverage ratio.
An unused commitment fee of 0.125% to 0.250% applies in the first year, rising to as much as 0.300% thereafter.
The signal: The deal reflects how established companies are leaning on relationship lenders to refinance ahead of maturities — CoBank, already a lender under Sensient's existing June 2025 facility, was a natural fit. The flexible structure, with up to five advances over 15 months and penalty-free prepayment, gives Sensient room to manoeuvre as rates shift.
Read more: StreetInsider
Image credit: AI-generated image (Gemini)
