West Pharmaceutical replaces 2019 credit facility with new five-year agreement

West Pharmaceutical Services, Inc. terminated its existing credit agreement and entered into a new financing structure on October 26, 2026. The company used proceeds from the new borrowings to fully repay $130 million in outstanding principal under its previous 2019 credit agreement, a move that incurred no early termination penalties.

The new arrangement, known as the New Credit Agreement, is led by Bank of America, N.A., which serves as the administrative agent, swing line lender, and an issuing lender. The facility consists of two primary components: a revolving credit facility and a term loan facility. Under the terms of the agreement, lenders committed to provide revolving advances up to an aggregate principal amount of $750 million at any one time. Additionally, term lenders committed to provide a term loan advance of $200 million on the effective date.

The New Credit Agreement has a five-year term, subject to specific extension mechanics that allow the company to request maturity date extensions for the revolving credit facility. The $200 million term loan includes quarterly amortization payments beginning on March 31, 2028. These payments range from $1.25 million to $2.5 million per quarter, with the remaining balance due at maturity. The agreement also permits the issuance of letters of credit up to an aggregate amount of $50 million and swing line loans up to $90 million, both of which are included within the aggregate commitments of the revolving credit facility.

Revolving advances are available in U.S. dollars or optional currencies, including Euros, Yen, and Singapore dollars. Term loans are advanced exclusively in U.S. dollars, while swing line loans are available in U.S. dollars or Euros. Interest rates for revolving advances depend on the currency denomination. For U.S. dollar borrowings, interest accrues at the company's option at a term SOFR rate or a base rate plus an applicable margin. Euro-denominated borrowings accrue interest at the Euro Interbank Offered Rate plus an applicable margin, while Yen and Singapore dollar borrowings use the Japanese Yen Tokyo Interbank Offered Rate and Singapore Overnight Rate Average, respectively.

The applicable margin for revolving advances that are term SOFR loans or optional currency loans ranges from 1.000% to 1.500%. For revolving advances that are base rate loans, the applicable margin ranges from 0.000% to a higher threshold based on the company's Net Leverage Ratio. The same Net Leverage Ratio determines the applicable margin for letter of credit fees. West Pharmaceutical Services intends to use the proceeds from these borrowings for working capital, capital expenditures, and other general corporate purposes. This includes paying all or a portion of purchase prices for permitted acquisitions and repurchases of capital stock, as well as repaying or retiring other indebtedness.