FMC increases maximum leverage ratio under two credit agreements

By Sarah Lizee

Olympia, Wash., April 22 – FMC Corp. amended its credit agreement and term loan agreement to increase the maximum leverage ratio permitted under each agreement, according to a press release.

The maximum leverage ratio applicable on the last day of each fiscal quarter will increase to 4.25 through the period ending Dec. 31, step down to 4 for the period ending March 31, 2021 and step down to 3.5 for the period ending June 30, 2021.

The company's maximum leverage ratio was previously 4 for the period ending March 31, with a step down to 3.5 for the period ending June 30.

“We have no concerns about our liquidity,” Pierre Brondeau, chairman and chief executive officer of FMC, said in the release.

“In an abundance of caution, we believed it was a prudent step to increase the maximum leverage ratio permitted under our credit facilities. The higher leverage ratio provides significant headroom above any of the Covid-19 related scenarios we have assessed.”

FMC is a Philadelphia-based chemicals manufacturer.

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