Stepan Company Enters $500M Credit Agreement

What Happened
Stepan Company announced on September 25, 2026 that it entered into a new Credit Agreement providing $500.0 million of committed facilities: a $350.0 million multicurrency revolving credit facility and a $150.0 million delayed draw term loan. The facilities mature on September 25, 2031 and replace Stepan’s prior credit facilities dated June 24, 2022.

Key Details

• Total initial commitments: $500.0 million (350.0M revolver + 150.0M delayed‑draw term loan).
• Expansion option: up to an additional $250.0 million of capacity subject to conditions.
• Maturity: September 25, 2031 (five‑year committed facilities).
• Pricing: interest based on (a) base rate + 0.125%–0.625%, (b) term benchmark (Adjusted Term SOFR or Adjusted EURIBOR) + 1.125%–1.625%, or (c) Adjusted Daily Simple RFR + 1.125%–1.625%, depending on net leverage.
• Fees: commitment and ticking fees of 0.125%–0.225% per annum (tiered by net leverage).
• Lenders/agents: JPMorgan Chase Bank, N.A. (administrative agent and joint lead arranger/bookrunner) and Bank of America, N.A. (syndication agent) with BofA Securities, Inc. as joint lead arranger/bookrunner.
• Covenants & defaults: customary covenants including maintenance of interest coverage and net leverage ratios, and limitations on restricted payments, additional indebtedness and liens; standard events of default (payment default, covenant breach, change of control, bankruptcy, etc.).

Why It Matters
This new credit package secures multi‑year liquidity for working capital, permitted acquisitions, capital expenditures and general corporate purposes, while extending Stepan’s committed borrowing runway to 2031. The agreement replaces prior facilities and offers potential incremental capacity (up to $250M). Investors should note the financial covenants and leverage‑based pricing/fees, which can affect Stepan’s borrowing costs and flexibility if leverage changes.