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Quaker Houghton Amends Credit Agreement to Boost Financial Flexibility

Quaker Houghton (NYSE: KWR), a global leader in industrial process fluids, has announced a substantial amendment to its credit agreement, which represents a significant step towards enhancing the company's financial stability. This strategic move not only extends debt maturities but also increases the amount available under its revolving credit facility, a crucial aspect of the company’s financial strategy.

Key Features of the Amended Credit Agreement

The amended credit agreement comprises several noteworthy elements that underline Quaker Houghton’s ongoing commitment to financial health:

• - Extension of Debt Maturities: The nearest debt maturity has been pushed forward to 2031, allowing the company greater time to manage its financial obligations effectively.
• - Increased Credit Availability: The agreement includes a senior secured U.S. dollar-denominated term loan amounting to $550 million, along with a €250 million senior secured euro-denominated term loan. Additionally, the revolving credit facility has been enhanced to $800 million, a significant increase that provides more liquidity for operational needs.
• - Enhanced Liquidity Options: With the capacity to increase the revolving credit facility by approximately $331 million, Quaker Houghton positions itself to meet unexpected financial challenges or to take advantage of growth opportunities as they arise.

This financial maneuver is designed to bolster the company's balance sheet while strategically positioning it for sustained growth. Joseph Berquist, the Chief Executive Officer of Quaker Houghton, commented, "This amended credit agreement further strengthens our already healthy balance sheet by extending maturities and enhancing liquidity. With increased financial flexibility, we are well-positioned to execute our strategy, achieve our capital allocation priorities, and continue investing in both organic growth and strategic mergers and acquisitions."

Purpose of the Credit Facilities

The proceeds from the new term facilities have directed towards repaying all existing loans under the former credit agreement, fulfilling the company's need to streamline its financial commitments. Additionally, this capital has allowed for the termination of revolving credit commitments under the previous agreement, thereby avoiding unnecessary financial encumbrances and enabling the company to fund strategic growth initiatives and future capital allocation priorities.

Quaker Houghton is dedicated to fostering innovation within the industrial process fluids sector, serving a diverse clientele in over 25 countries. The firm works with leading companies across various industries, including steel, automotive, aerospace, and mining, which reinforces its position as a market leader.

Future Outlook

As Quaker Houghton advances into the future, the company aims to capitalize on its improved financial standing to enhance growth and operational efficiency. This strategic credit modification demonstrates the firm’s proactive approach to navigating the challenges of the current economic climate while remaining committed to delivering high-quality products and services to its clients.

As the global market continues to evolve, Quaker Houghton’s leadership remains focused on leveraging its technological capabilities and deep process expertise to sustain its competitive edge. With a dedicated workforce of approximately 4,700 professionals, including chemists, engineers, and industry experts, Quaker Houghton is well-equipped to meet the demands of a rapidly changing industry.

• -### About Quaker Houghton

Founded and headquartered in Conshohocken, Pennsylvania, Quaker Houghton has established itself as a pioneer in the field of industrial process fluids. The company prides itself on offering innovative, sustainable solutions that are backed by cutting-edge technology and exceptional customer service. With a broad portfolio aimed at improving operational efficiency for its clients, Quaker Houghton continues to set the standard in the industry and drive forward-thinking strategies that embody excellence and growth.