ASHLAND INC. 8-K

What Happened

• Ashland Inc. announced on May 28, 2026 that it entered into a Second Amended and Restated Credit Agreement establishing a $500 million five-year revolving credit facility (the "Revolving Facility"), which includes a $125 million letter-of-credit sublimit. The facility replaces and restates the company’s prior credit agreement dated July 22, 2022.

Key Details

• Size & term: $500 million revolving credit facility, five-year term; $125 million letter-of-credit sublimit.
• Borrowers & security: Ashland Inc. and Swiss subsidiary Ashland Industries Europe GmbH may borrow; Ashland guarantees the Swiss borrower’s obligations. The facility is unsecured.
• Pricing & fees: Initial pricing is Term SOFR (or EURIBOR) + 1.375% for rate-based loans (or alternate base rate + 0.375%), shifting after an initial compliance certificate to margins that vary with the company’s leverage (SOFR/EURIBOR +1.25% to +1.75%, or alternate base rate +0.25% to +0.75%). Unused commitment fees start at 0.175% and then adjust between 0.125%–0.275% based on leverage.
• Agents: The Bank of Nova Scotia, Houston Branch serves as administrative agent (and swing line/LC issuer); Citibank, N.A. is syndication agent.
• Use of proceeds & terms: Borrowings may be used for working capital and general corporate purposes; prepayment is allowed at any time without premium. The agreement includes customary covenants and events of default, including financial covenants (maximum Consolidated Net Leverage Ratio and minimum Consolidated Interest Coverage Ratio).

Why It Matters

• This new facility provides Ashland near-term liquidity and flexibility for working capital and corporate needs while resetting borrowing terms for the next five years.
• The covenant and pricing structure ties Ashland’s borrowing cost and unused-fee rates to its leverage, so investors should monitor reported leverage and coverage ratios in future filings to assess potential interest-cost changes and covenant compliance risk.