FMC Corporation finalizes amendment to credit agreement
- FMC Corporation secures temporary covenant relief, demonstrating proactive financial management in response to global crop protection market challenges.
- Amendment provides ample headroom and duration, indicating confidence in navigating current challenges and generating strong cash flow in 2024.
- Commitment to prioritize debt payment and shareholder dividends signals financial stability and long-term growth potential.
- None.
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.
About FMC
FMC Corporation is a global agricultural sciences company dedicated to helping growers produce food, feed, fiber and fuel for an expanding world population while adapting to a changing environment. FMC's innovative crop protection solutions – including biologicals, crop nutrition, digital and precision agriculture – enable growers, crop advisers and turf and pest management professionals to address their toughest challenges economically while protecting the environment. With approximately 6,600 employees at more than 100 sites worldwide, FMC is committed to discovering new herbicide, insecticide and fungicide active ingredients, product formulations and pioneering technologies that are consistently better for the planet. Visit fmc.com to learn more and follow us on LinkedIn®.
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SOURCE FMC Corporation
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