INNOSPEC INC. (NASDAQ:IOSP) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement |
On December14, 2016, Innospec Inc. (the Company) and certain
subsidiaries of the Company entered into a Third Amendment and
Restatement Agreement with various lenders which amends and
restates the Companys credit facility agreement dated December14,
2011,as amended and restated on August28, 2013 and November6,
2015 (the Pre-Existing Credit Agreement; the Pre-Existing Credit
Agreement, as amended and restated to the Third Amendment and
Restatement Agreement, being the Amended Credit Agreement.)
The Amended Credit Agreement retains the $200,000,000 revolving
credit facility available to the Company and adds a term loan
facility of $110,000,000. The termination date of the revolving
facility remains November6, 2020. The term loan has an
$11,000,000 repayment installment due December28, 2017, a
$16,500,000 installment due December28, 2018 and a $22,000,000
installment due December28, 2019, with the outstanding balance
due on November6, 2020.
The proceeds of the term loan are to be used in connection with
Companys obligations under the Share and Asset Purchase Agreement
(the SAPA), dated as of October25, 2016 by and between Huntsman
Investments (Netherlands) B.V. and Innospec International LTD, as
amended. The SAPA was previously disclosed in the Companys
Current Report on Form 8-K dated October27, 2016 and a copy of
the SAPA was filed as an exhibit to that Current Report on Form
8-K.
The obligations of the Company under the Amended Credit Agreement
are secured obligations and guaranteed by certain subsidiaries of
the Company. Amounts available under the revolving facility may
be borrowed in U.S. dollars, Euros, British pounds and other
freely convertible currencies. The term loan has a base currency
of U.S. dollars.
The Amended Credit Agreement contains customary representations,
covenants and events of default, which are broadly consistent
with those in the Pre-Existing Credit Agreement, although the
initial margin (to which LIBOR or EURIBOR, as applicable, is
added to calculate the interest rate for loans under the Amended
Credit Agreement) has increased to 1.70% and the amount of
permitted indebtedness has increased.
Under the Amended Credit Agreement, the Company pays a customary
upfront arrangement fee to its lenders, as well as a fee to the
coordinating bank and reimbursement of certain expenses.
This description of the Third Amendment and Restatement Agreement
is qualified in its entirety by reference to the Third Amendment
and Restatement Agreement, a copy of which is attached as Exhibit
10.1 to this report and incorporated herein by reference.
| Item2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant |
See Item1.01 above, which is incorporated herein by reference.
| Item9.01 | Financial Statements and Exhibits |
(d) Exhibits
See the attached exhibit index, which is incorporated herein by
reference.
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About INNOSPEC INC. (NASDAQ:IOSP)
Innospec Inc. develops, manufactures, blends, markets and supplies fuel additives, oilfield chemicals, personal care and fragrance ingredients and other specialty chemicals. The Company operates in three segments: Fuel Specialties, Performance Chemicals and Octane Additives. The Company’s products are sold to oil and gas exploration and production companies, oil refineries, personal care and fragrance companies, and other chemical and industrial companies. The Fuel Specialties segment develops, manufactures, blends, markets and supplies a range of specialty chemical products used as additives to a range of fuels. The Performance Chemicals segment provides technology-based solutions for the processes or products focused in the Personal Care, Polymers and Fragrance Ingredients markets. The Octane Additives segment produces tetra ethyl lead (TEL) and consists of sales of TEL for use in automotive gasoline, and provides services in its environmental remediation business. INNOSPEC INC. (NASDAQ:IOSP) Recent Trading Information
INNOSPEC INC. (NASDAQ:IOSP) closed its last trading session down -1.25 at 69.80 with 229,465 shares trading hands.