Cabot Corporation announced that it has amended its revolving credit facilities to increase the maximum leverage ratio permitted under those agreements. The maximum leverage ratio applicable on the last day of each fiscal quarter will increase to 4.5 times beginning with the quarter ending September 30, 2020 and through the quarter ending June 30, 2021. There were no changes in material terms under the agreements. The company's maximum leverage ratio was previously 3.5 times for the term of these credit facilities. The agreements are scheduled to mature in October 2022.

 

Cabot President and CEO Sean Keohane said, “While our liquidity position remains strong, increasing the maximum leverage ratio permitted under these credit facilities represents a prudent step to provide incremental headroom in light of the uncertainty in demand due to the COVID-19 pandemic. This step will provide additional flexibility beyond the COVID-19 related stress test scenarios we have assessed.”

 

“Our financial position remains sound as we work through this uncertain environment. We are confident in our expected strong cash flow generation in the second half of the fiscal year and believe our solid balance sheet will allow us to successfully navigate this period and emerge from the downturn as an even stronger industry leader,” said Keohane.