AdvanSix refinances $425M credit facilities, adds $150M term loan
What's the deal? AdvanSixDealroom has a profile for this one. Try Dealroom → has completed a $425 million refinancing of its senior secured credit facilities, entering a new agreement with Citizens Bank, N.A.Dealroom has a profile for this one. Try Dealroom → as administrative agent. The package includes a $275 million revolving credit facility and a new $150 million term loan, both maturing on 14 August 2031.
Why now? The deal replaces a prior facility in place since October 2021 and pushes the company's debt maturities out to 2031, extending its liquidity runway. It also terminates AdvanSix's earlier credit agreement with Truist BankDealroom has a profile for this one. Try Dealroom →.
What's the endgame? At closing, AdvanSix drew $145 million on the revolver and the full $150 million term loan. Proceeds repaid all outstanding obligations under the old facility and covered related fees; the company held roughly $17 million in cash after closing.
By the numbers: The term loan amortises quarterly, at 2.50% annually in year one, 5.00% in years two through four, and 7.50% in year five, with the balance due at maturity. Borrowings carry an initial margin of 2.00% over Term SOFR, adjusting with the company's leverage ratio.
What could go wrong? The agreement carries covenants limiting dividends, new debt, and asset sales, and requires a maximum leverage ratio of 3.75 to 1.00. With $145 million already drawn, about $130 million of revolving capacity remains, subject to sublimits for letters of credit and swing line loans.
The signal: For a listed chemicals maker, refinancing before maturity is a routine but telling move — locking in flexible terms and a five-year runway signals a focus on balance-sheet stability over expansion.
Read more: MiniChart
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