Ashland Inc. (NYSE: ASH) today announced that the company and its bank group entered into an amendment to Ashland’s senior unsecured credit agreement dated June 23, 2015 (the “Ashland credit agreement”) and that Ashland’s wholly owned subsidiary, Valvoline Finco One LLC, has entered into a delayed-draw credit agreement for new senior secured bank facilities (the “Valvoline delayed-draw credit agreement”). These agreements
mark a significant milestone in Ashland’s previously announced plan to separate into two independent, publicly traded companies: Ashland Global Holdings Inc., composed of Ashland Specialty Ingredients and Ashland Performance Materials, and Valvoline Inc., composed of Ashland’s Valvoline business segment.
The Ashland credit agreement was amended to permit, among other things, the transactions contemplated by the separation and to make certain related technical changes.
The Valvoline delayed-draw credit agreement provides for $1.325 billion in financing, consisting of a five-year secured senior revolving credit facility in an aggregate amount of $450 million, which includes a $100 million letter of credit sublimit, and a five-year senior secured term loan facility in an aggregate principal amount of $875 million. The Valvoline delayed-draw credit agreement will be available for borrowings upon the transfer of the Valvoline business to Valvoline Inc. and upon the satisfaction of certain other conditions. Ashland expects to satisfy these conditions in the fall of 2016 in connection with other steps in the planned separation.
