Cabot closes $1 billion revolver with sustainability-linked pricing

By Marisa Wong

Los Angeles, Aug. 9 – Cabot Corp. announced it executed a new $1 billion unsecured revolving credit facility, replacing its existing $1 billion revolver set to mature in October 2022, while adding a sustainability-linked pricing mechanism.

The credit agreement matures on Aug. 6, 2026, subject to two one-year extension options exercisable prior to the first and second anniversaries of the effective date of the credit agreement.

Pricing is based on the company’s credit ratings as well as its performance against annual intensity reduction targets for its sulfur dioxide and nitrogen oxide emissions.

The deal is among the first sustainability-linked revolving credit agreements in the U.S. chemical industry, the company noted in a press release.

The syndicate of lenders was led by JPMorgan Chase Bank, NA as lead left bookrunner and administrative agent and also a joint lead arranger alongside Citibank, NA, Mizuho Bank, Ltd., TD Securities (USA) LLC, Bank of America, NA and U.S. Bank, NA.

Citibank is also joint bookrunner and syndication agent.

Mizuho Bank, TD Securities, Bank of America, U.S. Bank and Wells Fargo Bank, NA are co-documentation agents.

J.P. Morgan Securities LLC and Mizuho Bank acted as co-sustainability agents.

Cabot is a specialty chemicals and performance materials company based in Boston.

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