Celanese Amends Credit Agreement, Eases Leverage Covenant to 5.50x Through Maturity

summarizeSummary

Celanese amended its revolving credit facility to relax its net leverage covenant to 5.50x through maturity and increase foreign subsidiary debt capacity by $150 million, providing financial flexibility after a challenging 2025.

check_boxKey Events · Financing and Capital Events · CE

• Leverage Covenant Relaxed to 5.50x

  From March 31, 2027 through maturity, the consolidated net leverage ratio covenant is set at 5.50:1.00, with gradual step-downs to 4.00:1.00 by 2030, replacing a prior path to 3.50:1.00.

• Foreign Subsidiary Debt Baskets Increased

  Combined negative covenant baskets for foreign subsidiary debt were raised from $900 million to $1.05 billion, providing additional capacity for acquisitions and corporate purposes.

• Covenant Relief Period Extended

  The Covenant Relief Period now runs through the maturity date, with an option to terminate early if leverage falls below 3.50:1.00 for two consecutive quarters.

• Pricing Grid Updated

  The Applicable Rate definition was amended to include a new pricing grid tied to Debt Ratings, with margins ranging from 1.000% to 2.250% depending on credit rating.

auto_awesomeAnalysis · CE · Industrial Applications And Services

To secure breathing room after a $1.165 billion net loss and $1.486 billion in impairment charges in 2025, Celanese amended its revolving credit facility, relaxing the net leverage covenant to 5.50x from March 2027 through maturity—up from a prior step-down to 3.50x. The amendment also lifts foreign subsidiary debt baskets by $150 million to $1.05 billion. Coming on the heels of a strong Q2 earnings beat, the looser covenants reduce near-term default risk but signal that management expects leverage to remain elevated for years.