West Pharmaceutical Services Secures $1.5B Credit Facility

Ticker: WST · Form: 8-K · Filed: Jul 8, 2024 · CIK: 105770

Sentiment: neutral

Topics: debt, financing, credit-facility

TL;DR

WEST just locked in $1.5B in new credit lines with JPMorgan, maturing in 2029 and 2031.

AI Summary

On July 2, 2024, West Pharmaceutical Services, Inc. entered into a Material Definitive Agreement, specifically a Credit Agreement, with JPMorgan Chase Bank, N.A. as administrative agent. This agreement establishes a new $1.0 billion revolving credit facility, which matures on July 2, 2029. The company also entered into a Term Loan Agreement with the same agent for a $500 million term loan, maturing on July 2, 2031.

Why It Matters

This significant credit facility provides West Pharmaceutical Services with substantial financial flexibility for future growth, potential acquisitions, or operational needs, enhancing its financial stability.

Risk Assessment

Risk Level: low — The filing details the establishment of credit facilities, which is a standard financial activity and does not inherently present immediate risks to the company.

Key Numbers

Key Players & Entities

FAQ

What is the purpose of the new credit facilities?

The filing indicates the credit facilities are for general corporate purposes, which can include funding operations, capital expenditures, and potential strategic initiatives.

Who is the primary financial institution involved in these credit agreements?

JPMorgan Chase Bank, N.A. is acting as the administrative agent for both the $1.0 billion revolving credit facility and the $500 million term loan.

When do the new credit facilities mature?

The $1.0 billion revolving credit facility matures on July 2, 2029, and the $500 million term loan matures on July 2, 2031.

What type of agreements were entered into by West Pharmaceutical Services?

West Pharmaceutical Services entered into a Credit Agreement for the revolving credit facility and a Term Loan Agreement for the term loan.

What is the total amount of new financing secured by West Pharmaceutical Services?

West Pharmaceutical Services has secured a total of $1.5 billion in new financing through a $1.0 billion revolving credit facility and a $500 million term loan.

Filing Stats: 1,119 words · 4 min read · ~4 pages · Grade level 11 · Accepted 2024-07-08 07:56:50

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. See Item 2.03 below for a description of the Third Amendment and Incremental Facility Amendment entered into on July 2, 2024 (the " Third Amendment to the Credit Agreement "), which amends the Credit Agreement, dated as of March 28, 2019 (as amended or otherwise modified prior to the Third Amendment to the Credit Agreement, the " Existing Credit Agreement "), among West Pharmaceutical Services, Inc. (the " Company "), as borrowers' representative, certain subsidiaries of the Company party thereto, Bank of America, N.A., as the administrative agent, and the lenders party thereto, which is incorporated by reference into this Item 1.01. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On July 2, 2024, the Company entered into the Third Amendment to the Credit Agreement, which amended the Existing Credit Agreement (the Existing Credit Agreement, as amended by the Third Amendment to the Credit Agreement, the " Amended Credit Agreement "). Among other changes to the Existing Credit Agreement, the Third Amendment to the Credit Agreement established an incremental term loan in the stated principal amount of $130.0 million (the " New Term Loan "), which was fully drawn at closing and matures on July 2, 2027. The entire stated principal amount of the New Term Loan is due at maturity and there is no scheduled amortization prior to such date. Together with cash on hand, proceeds from the New Term Loan were used to repay an outstanding term loan under the Existing Credit Agreement in the principal amount of approximately $80 million and to repay an aggregate principal amount of approximately $53 million of the Company's 3.82% Series B Senior Notes due July 5, 2024 issued under that certain Note Purchase Agreement dated as of July 5, 2012. Interest accrues on the New Term Loan based on a term secured overnight financing rate (" SOFR ") or a

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibit No. Description 10.1 Third Amendment and Incremental Facility Amendment, dated as of July 2, 2024, among the Company, as borrower's representative, each of the lenders party thereto and Bank of America, N.A., as the administrative agent. 104 The cover page from the Company's Current Report on Form 8-K, dated July 2, 2024, formatted in Inline XBRL. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 8, 2024 WEST PHARMACEUTICAL SERVICES, INC. By: /s/ Bernard J. Birkett Bernard J. Birkett Senior Vice President, Chief Financial Officer 3 EXHIBIT INDEX Exhibit No. Description 10.1 Third Amendment and Incremental Facility Amendment, dated as of July 2, 2024, among the Company, as borrower's representative, each of the lenders party thereto and Bank of America, N.A., as the administrative agent. 104 The cover page from the Company's Current Report on Form 8-K, dated July 2, 2024, formatted in Inline XBRL. 4

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