Element Solutions Inc 8-K

What Happened
Element Solutions Inc (the Company) filed an 8‑K dated February 2, 2026, announcing Amendment No. 10 to its Credit Agreement to add $450 million of incremental U.S. dollar term loans and a new $500 million revolving credit facility. The New Term Loans were established as fungible with the Company’s existing $836 million tranche B term loans and, together with available cash, financed the previously announced acquisition of Micromax, which closed on February 2, 2026 for approximately $500 million (subject to adjustments). The Company also issued a press release the same day announcing the acquisition and financing.

Key Details

• New Term Loans: $450.0 million incremental U.S. dollar term facility, fungible with existing $836.0M tranche B term loans; maturity December 18, 2030; interest at Term SOFR (floor 0%) + 1.75% per annum.
• New Revolving Credit Facility: $500.0 million capacity, replacing the prior $375.0 million revolver (upsized by $125.0M); maturity February 2, 2031. Borrowings priced at borrower’s election of Term SOFR/Adjusted EURIBO/Daily Simple RFR +1.50% (floor 0%) or Base Rate +0.50%. Commitment fee on undrawn revolver 0.225% p.a.; L/C fees 1.50% p.a.
• Security & Guarantees: New Term Loans are guaranteed by certain restricted subsidiaries and secured by existing collateral under the Company’s pledge and security agreement.
• Hedging: The Company entered interest‑rate and cross‑currency swaps to convert $350.0M of the New Term Loans into fixed‑rate euro‑denominated debt through December 2029.

Why It Matters
The amendment provides immediate financing to complete the Micromax acquisition while increasing liquidity via a larger revolver and extending revolver maturity to 2031. The incremental term loan increases the Company’s total term loan exposure but is partly hedged by swaps that convert a substantial portion into fixed‑rate euro debt, affecting interest rate and currency risk profiles. These changes are material to creditors and investors because they alter the Company’s debt levels, maturity schedule and interest cost structure.