Celanese Corp Amends Revolving Credit Agreement, Raises Leverage Covenant

What Happened

• On July 31, 2026, Celanese US Holdings LLC (a wholly owned subsidiary of Celanese Corporation) entered into a First Amendment to its Credit Agreement (the Revolving Credit Agreement originally dated August 11, 2025). The amendment (filed as Exhibit 10.1) changes covenant and basket terms to provide the company more near-term financing flexibility.
• Key changes include an initial consolidated net leverage ratio covenant of 5.50:1.00 applicable from the fiscal quarter ending March 31, 2027 through the maturity date, modified step-down levels thereafter, and an increase in certain combined negative covenant baskets for incurring debt from $900 million to $1,050 million.

Key Details

• Amendment date: July 31, 2026; original credit agreement dated August 11, 2025.
• Consolidated net leverage ratio set to initially 5.50:1.00 from the quarter ending March 31, 2027 through maturity, with later step-downs.
• Increased combined negative covenant baskets for (a) debt by foreign subsidiaries in connection with acquisitions and (b) debt by Chinese subsidiaries for corporate purposes: $900M → $1,050M.
• Bank of America, N.A. serves as Administrative Agent; certain schedules/attachments were omitted from the public exhibit per Regulation S‑K but are available to the SEC on request.

Why It Matters

• The amendment loosens short-term covenant pressure by allowing a higher leverage ratio and larger debt baskets, giving Celanese more flexibility for acquisitions, corporate activity in China, and general financing through the Revolving Credit Agreement.
• For investors, this affects the company’s covenant headroom and potential near-term borrowing capacity; watch future leverage disclosures and any use of the newly available basket amounts as indicators of capital deployment or rising indebtedness. This is a financing change, not an operational or earnings announcement.