Cabot Corporation enters into $1 billion sustainability linked revolving credit facility
Boston, MA – Cabot Corporation has announced execution of its new $1 billion unsecured revolving credit facility. With this transaction, Cabot has replaced its existing $1 billion unsecured revolving credit agreement that was scheduled to mature in October of 2022, while adding a sustainability linked pricing mechanism to the new agreement.
The credit agreement matures on August 6, 2026, subject to two options to extend the maturity by one year, exercisable prior to the first and second anniversaries of the effective date of the Credit Agreement. Pricing for the facility is based upon the company’s credit ratings as well as its performance against annual intensity reduction targets for its sulfur dioxide (SO2) and nitrogen oxide (NOX) emissions. The deal is among the first sustainability-linked revolving credit agreements in the U.S. chemical industry.
“Cabot has a long history of leadership and innovation in the chemical industry. Consistent with this leadership is our commitment to sustainability, acting responsibly for the planet and being a good corporate citizen,” said Sean D. Keohane, president and CEO. “We are excited to deepen this commitment by being among the first major chemical companies in the U.S. to secure a sustainability linked facility that rewards our continued efforts in reducing our SO2 and NOX emissions.”
“Incorporating this important sustainability goal into our credit agreement directly aligns with the commitments we have made to our stakeholders under our ambitious 2025 sustainability goals,” said Martin O’Neil, senior vice president, safety, health and environment. “Transparency remains a cornerstone of our sustainability agenda, and we continue to extend that commitment by enhancing our sustainability reporting and disclosures. We are proud of the progress we are making in our sustainability initiatives, and we look forward to working with our various stakeholders to achieve our goals.”
More details on Cabot’s sustainability commitments and progress can be found in its 2020 Sustainability Report.
The credit agreement was entered into with a syndicate of lenders arranged by, JPMorgan Chase Bank, N.A. as lead left book runner, administrative agent and joint lead arranger, Citibank, N.A., as Joint book runner, joint lead arranger and syndication agent, Mizuho Bank, Ltd., TD Securities (USA) LLC., Bank of America, N.A., U.S. Bank, National Association as joint lead arrangers and co-documentation agents and Wells Fargo Bank, National Association as co-documentation agent. J.P. Morgan Securities LLC and Mizuho Bank, Ltd. also served as co-sustainability agents.