Ashland Inc. announces entry into new Credit Agreement
June 23 2015 - 4:30PM
News Release
June 23, 2015
Ashland Inc.
announces entry into new Credit Agreement
COVINGTON, Ky. - Ashland Inc.
(NYSE: ASH) today announced that it has entered into a new credit
agreement with The Bank of Nova Scotia, as administrative agent,
Citibank, N.A., as syndication agent, Bank of America, N.A.,
Deutsche Bank Securities Inc. and PNC Bank, National Association,
as co-documentation agents, and JPMorgan Chase Bank, N.A., Mizuho
Bank Ltd., U.S. Bank National Association and Wells Fargo Bank,
National Association, as managing agents, and each lender party
thereto and the other agents party thereto. Citigroup Global
Markets Inc., The Bank of Nova Scotia, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Deutsche Bank Securities Inc. and
PNC Capital Markets LLC acted as joint lead arrangers and joint
book managers for the new credit agreement.
The new credit agreement provides
for a five-year senior unsecured revolving credit facility in an
aggregate amount of $1.2 billion, which includes a $250 million
letter of credit sublimit and a $100 million swing line loan
sublimit, and a five-year senior unsecured term loan facility in an
aggregate principal amount of $1.1 billion. A portion of the
proceeds of the term loan facility were used to prepay all of
Ashland's outstanding loans under Ashland's existing credit
agreement, the commitments under which were terminated as of June
23, 2015. Proceeds from the term loan facility were also used
to repurchase in a tender offer a portion of Ashland's 3.000%
Senior Notes due 2016, and proceeds will be used to fund certain
underfunded pension obligations of Ashland and for other general
corporate purposes.
On June 23, 2015, after giving
effect to the rollover of letters of credit outstanding under
Ashland's existing credit agreement, Ashland had approximately
$1.128 billion of availability under the new revolving credit
facility, which may be used to provide ongoing working capital and
for other general corporate purposes.
Ashland will be filing with the
Securities and Exchange Commission a Current Report on Form 8-K,
which will include additional details about the new credit
agreement.
About
Ashland
Ashland Inc. (NYSE: ASH) is a global leader in providing specialty
chemical solutions to customers in a wide range of consumer and
industrial markets, including architectural coatings, automotive,
construction, energy, food and beverage, personal care and
pharmaceutical. Through our three commercial units - Ashland
Specialty Ingredients, Ashland Performance Materials and Valvoline
- we use good chemistry to make great things happen for customers
in more than 100 countries. Visit ashland.com to learn
more.
C-ASH
Forward-Looking
Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Ashland has identified some of these forward-looking statements
with words such as "anticipates," "believes," "expects,"
"estimates," "is likely," "predicts," "projects," "forecasts,"
"may," "will," "should" and "intends" and the negative of these
words or other comparable terminology. In addition, Ashland may
from time to time make forward-looking statements in its annual
report, quarterly reports and other filings with the Securities and
Exchange Commission (SEC), news releases and other written and oral
communications. These forward-looking statements are based on
Ashland's expectations and assumptions, as of the date such
statements are made, regarding Ashland's future operating
performance and financial condition, the economy and other future
events or circumstances. Ashland's expectations and assumptions
include, without limitation, internal forecasts and analyses of
current and future market conditions and trends, management plans
and strategies, operating efficiencies and economic conditions
(such as prices, supply and demand, cost of raw materials, and the
ability to recover raw-material cost increases through price
increases), and risks and uncertainties associated with the
following: Ashland's substantial indebtedness (including the
possibility that such indebtedness and related restrictive
covenants may adversely affect Ashland's future cash flows, results
of operations, financial condition and its ability to repay debt),
the impact of acquisitions and/or divestitures Ashland has made or
may make (including the possibility that Ashland may not achieve
the anticipated benefits from such transactions), the global
restructuring program (including the possibility that Ashland may
not realize the anticipated revenue and earnings growth, cost
reductions and other expected benefits from the program), Ashland's
ability to generate sufficient cash to finance its stock repurchase
plans, severe weather, natural disasters, and legal proceedings and
claims (including environmental and asbestos matters). Various
risks and uncertainties may cause actual results to differ
materially from those stated, projected or implied by any
forward-looking statements, including, without limitation, risks
and uncertainties affecting Ashland that are described in its most
recent Form 10-K (including Item 1A Risk Factors) filed with the
SEC, which is available on Ashland's website at
http://investor.ashland.com or on the SEC's website at
http://www.sec.gov. Ashland believes its expectations and
assumptions are reasonable, but there can be no assurance that the
expectations reflected herein will be achieved. Unless legally
required, Ashland undertakes no obligation to update any
forward-looking statements made in this news release whether as a
result of new information, future event or otherwise.
FOR FURTHER
INFORMATION:
Media Relations:
Gary Rhodes
+1 (859) 815-3047
glrhodes@ashland.com
Investor Relations:
Jason Thompson
+1 (859) 815-4454
jthompson@ashland.com
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ashland Inc. via Globenewswire
HUG#1930670
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