QUAKER CHEMICAL CORP 8-K

What Happened

• Quaker Chemical Corporation (KWR) filed an 8-K on April 14, 2026 reporting that on April 10, 2026 it entered Amendment No. 4 to its existing credit agreement with Bank of America, N.A. (Administrative Agent) and other lenders. The amendment creates a new euro‑denominated term loan for Quaker Houghton B.V. equal to the euro amount equivalent to $250,000,000, a new U.S. dollar term loan for the Company of $550,000,000, and a new $800,000,000 revolving credit facility (aggregate facilities ≈ $1.6 billion). Proceeds will repay the prior credit agreement borrowings, terminate prior commitments, and provide working capital and liquidity. The amended facility matures on April 10, 2031.

Key Details

• New facilities: Euro term ≈ $250M, U.S. term $550M, Revolving $800M; total ≈ $1.6B.
• Interest: U.S. dollar loans at Base Rate or Term SOFR + applicable spread (Term SOFR spread 1.00%–1.75%; Base Rate spread 0.00%–0.75%), similar pricing for other currencies.
• Security & guarantees: Guaranteed by certain domestic subsidiaries and secured by first-priority liens on substantially all assets (customary exclusions); Quaker Houghton B.V. liable only for its borrowings.
• Covenants & limits: Consolidated Net Leverage Ratio generally ≤ 4.25x (with temporary increases allowed after certain acquisitions); consolidated interest coverage covenant; dividend/share repurchase and other restricted payment baskets (e.g., regular dividends up to greater of $30M or 5% of market cap; other repurchases up to greater of $33M or 10% of Consolidated EBITDA if no default). The agreement allows certain incremental increases in capacity subject to conditions.

Why It Matters

• This amendment updates and refinances Quaker’s bank commitments, replacing the prior 2019 credit agreement and extending funded capacity and liquidity through 2031. For investors, it clarifies the company’s committed borrowing capacity, interest cost framework tied to SOFR or base rates, and financial covenants that could limit future leverage, dividends or large acquisitions if tests are breached. The facility is secured and guaranteed, so a default could accelerate repayment obligations. The filing also includes a company press release announcing the amendment.