West Pharmaceutical Services, Inc. has entered into a new financing agreement and terminated its previous credit facility, according to a Form 8-K filed with the SEC on October 26, 2026.
The company terminated its 2019 Credit Agreement on the Effective Date of October 26, 2026. As of that date, $130.0 million in aggregate principal amount was outstanding under the previous agreement, which was repaid in full without incurring early termination penalties.
On the same date, West Pharmaceutical entered into a New Credit Agreement with Bank of America, N.A., serving as administrative agent and swing line lender. The agreement provides for a revolving credit facility and a term loan facility.
The New Credit Agreement includes a $750 million revolving credit facility and a $200 million term loan facility. The revolving facility allows for letters of credit up to $50 million and swing line loans up to $90 million. The term loan of $200 million is advanced on the Effective Date and is subject to quarterly amortization payments beginning March 31, 2028, ranging from $1.25 million to $2.5 million per quarter, with the balance due at maturity.
The revolving advances are available in U.S. dollars or optional currencies, including Euros, Yen, and Singapore dollars. Interest rates are based on benchmarks such as SOFR, base rate, Euro Interbank Offered Rate, and others, plus an applicable margin that varies based on the company's Net Leverage Ratio.
The agreement includes a financial covenant limiting the Net Leverage Ratio to a maximum of 3.50 to 1.0 as of the last day of each fiscal quarter. This ratio is calculated as Net Consolidated Debt divided by Modified EBITDA for the preceding four fiscal quarters. The limit increases to 4.00 to 1.0 during material acquisition periods.
