FMC Corporation finalizes amendment to credit agreement
08 November 2023, US: FMC Corporation (NYSE:FMC) today finalized an expected amendment to its existing revolving credit agreement. The amendment raises the maximum leverage ratio covenant to 6.5 times immediately through June 30, 2024, after which the maximum leverage ratio will step down in increments to 3.75 times at September 30, 2025 and remain at that level thereafter. The interest coverage ratio covenant was similarly adjusted over this time period.
“We appreciate the unanimous support of our bank group and their recognition of the need for temporary covenant relief in light of the unprecedented downturn in the global crop protection market,” said Andrew Sandifer, FMC executive vice president and chief financial officer. “With today’s amendment, we now have ample headroom and duration that is well beyond what we believe will be required as we navigate the current challenges to free cash flow. We expect strong cash generation in 2024 which will be prioritized to paying down debt and delivering the dividend to shareholders.”
Additional details regarding the amendment are provided in the Form 8-K filed today. The company will provide further details on its financial outlook at its Investor Day on November 16.
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