School loan

Chase Corporation Announces Amended and Restated Credit Agreement

WESTWOOD, Mass .– () – Chase Corporation (NYSE American: CCF), a global specialty chemicals company that is a leading manufacturer of protective materials for high reliability applications in various market sectors, has entered into a new credit agreement amended and reformulated with Bank of America, NA, as administrative agent, and with input from Wells Fargo Bank, NA, PNC Bank, NA and JPMorgan Chase Bank, NA

The new credit agreement was entered into to modify, reformulate and extend the Company’s pre-existing credit facility, which was previously scheduled to expire on December 15, 2021. In addition, the agreement provides for additional liquidity to finance acquisitions, the fund working and capital expenditures; and for other general business purposes. The new agreement brings the Company’s borrowing capacity to $ 200 million (compared to $ 150 million under the old facility), with the possibility of requesting an increase in this amount by an additional $ 100 million from the individual or collective choice of one of the lenders (up to $ 50 million under the old facility).

Adam P. Chase, President and CEO, said: “Under this new credit agreement, we have secured an enhanced revolving credit facility that will continue to position us with adequate debt capital and available liquidity. to execute our inorganic growth plans. In this competitive market, having immediate access to funds gives us an advantage in our acquisition program, putting us in a position to close deals to achieve our strategic initiatives. By working with our lenders, led by Bank of America, as well as Wells Fargo, PNC and JP Morgan, we have put in place a great structure to meet our needs going forward. ”

As with the previous arrangement, the interest rate applicable to the new revolving credit facility and the new term loan is based on the London Effective Interbank Rate (LIBOR) plus a range of 1.00% to 1. , 75%, based on Chase’s consolidated net leverage ratio. and its subsidiaries. The new credit agreement has a term of five years with interest payments due at the end of the applicable LIBOR period (but in no case less frequently than the three month anniversary of the start of that LIBOR period) and payment principal upon expiry of the agreement on July 27, 2026. The new credit agreement contains provisions that may replace LIBOR as a benchmark in certain circumstances. In addition, the Company may elect a base rate option for all or part of the New Revolving Facility, in which case interest payments will be due on that part of the New Revolving Facility on the last business day of. each quarter.

Michael J. Bourque, Treasurer and Chief Financial Officer added, “The timing in the credit market was good, so we accelerated our renewal process. We can also choose to convert all or part of any outstanding balance on the new revolving facility into a new term loan twice during the term of the new revolving facility, giving us maximum flexibility with our debt structure at the to come up.

Additional information and the agreement can be found on the Company’s website under the SEC Filings section.

About Chase Corporation

Chase Corporation, a global specialty chemicals company founded in 1946, is a leading manufacturer of protective materials for high reliability applications around the world. You can find more information on our website https://chasecorp.com/

Caution regarding forward-looking statements

Certain statements contained in this press release are forward-looking. These can be identified by the use of forward-looking words or phrases such as “believe”; “wait”; “to anticipate”; “should”; “foreseen”; “Estimated” and “potential”, among others, and include statements regarding potential future acquisitions of the Company and the Company’s ability to comply with the covenants of the credit agreement. These forward-looking statements are based on Chase Corporation’s current expectations. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the Safe Harbor terms, the Company cautions investors that forward-looking statements made by the Company are not guarantees of future performance and that various factors could cause actual results and experience of the Company differ materially from the expected results or other expectations expressed in the forward-looking statements of the Company. The risks and uncertainties likely to affect the operations, performance, development and results of the activities of the Company include, without limitation, the following: uncertainties relating to economic conditions; uncertainties relating to customer plans and commitments; the price and availability of equipment, materials and inventory; technological development; performance issues with suppliers and subcontractors; economic growth; delays in testing new products; the Company’s ability to successfully integrate acquired transactions; the effectiveness of cost reduction plans; rapid technological changes; the highly competitive environment in which the Company operates; as well as the expected impact of the coronavirus disease (COVID-19) pandemic on the Company’s activities. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which the statement was made.