AdvanSix Inc. Announces $425M Credit Facility Refinancing

What Happened

• AdvanSix Inc. announced on Aug. 14, 2026 that it completed a refinancing of its senior secured credit facilities by entering into a new Credit Agreement with Citizens Bank, N.A. as administrative agent. The new facilities consist of a $275 million revolving credit facility and a $150 million term loan (total $425 million) that mature on Aug. 14, 2031. Proceeds were used to pay off the prior credit agreement, cover fees and expenses, and for general corporate purposes.

Key Details

• New facilities: $275M revolving credit facility and $150M term loan; both mature Aug. 14, 2031.
• Amounts drawn at closing: $145M borrowed under the revolver and $150M under the term loan; company reported about $17M cash on hand post-closing.
• Interest and fees: loans bear either base rate + margin (0.50%–1.50%) or Term SOFR + margin (1.50%–2.50%); current margins are 1.00% (base) and 2.00% (Term SOFR). Commitment fee on unused revolver is 0.30% per annum currently.
• Term loan amortization: quarterly installments equal to 2.50% of original principal in year 1, 5.00% in years 2–4, 7.50% in year 5, with remaining balance due at maturity.
• Collateral and covenants: substantially all tangible and intangible assets of the company and material U.S. subsidiaries are pledged. Financial covenants require a Consolidated Interest Coverage Ratio ≥ 3.00x and a Consolidated Leverage Ratio ≤ 3.75x (with limited flexibility for acquisitions).
• Prior facility terminated: outstanding loans under the previous credit agreement were repaid, commitments terminated, and related guarantees and liens released.

Why It Matters

• This refinancing secures committed liquidity through 2031 and resets AdvanSix’s debt structure with a $150M term loan and a larger $275M revolver, which may affect the company’s interest costs and cash flow requirements due to scheduled amortization and covenant tests. Investors should note the pledged collateral and covenant levels, which could constrain certain corporate actions if financial ratios weaken.