Quaker Houghton Announces Successful Completion of Term Loan B Refinancing in Leverage-Neutral Transaction

The leverage-neutral refinancing extends the debt maturity profile and, the company said, reduces required annual debt payments.

Rhea-AI Summary

Quaker Houghton (NYSE: KWR) closed a new U.S. dollar-denominated Term Loan B facility with an aggregate principal amount of $550 million.

The seven-year facility amends the existing Credit Agreement, and proceeds will repay in full the U.S. Term Loans outstanding under that agreement. It matures in October 2033 and is priced at SOFR, a benchmark interest rate, plus 175 basis points. Quarterly principal repayments equal 0.25% of the initial loan amount, with the balance due at maturity. The company said the refinancing extends its debt maturity profile and reduces required annual debt payments. The transaction is described as leverage-neutral.

3 points · 1 major

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Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 2 points

How the balance works

Positive

• Major point$550 million facility closed, with proceeds to repay existing U.S. Term Loans in full. 20% of market cap
• Minor pointDebt maturity extension to October 2033 provides greater capital flexibility, the company said.
• Minor pointRequired annual debt payments are reduced by the refinancing, the company said.

Negative

• Major pointInterest obligation on the new facility is priced at SOFR plus 175 basis points.
• Minor pointQuarterly principal repayments equal 0.25% of the initial loan amount, with the balance due at maturity.

Key Figures

Facility principal: $550 million Facility term: 7 years Maturity: October 2033 +2 more

Facility principal

$550 million

New U.S. dollar-denominated Term Loan B

Facility term

7 years

Term Loan B

Maturity

October 2033

Term Loan B

Pricing

SOFR +175 basis points

Term Loan B

Quarterly amortization

0.25% of the initial aggregate principal amount

Balance due at maturity

Historical Context

1 past event · Latest: Jul 30

1 event

1. Jul 30

   Earnings report

   24h Move

   +3.6%

   Reported $876.1 million gross debt, $721.0 million net debt and 2.3x leverage.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

sofr, amortization, administrative agent

3 terms

sofr financial

"The Term Loan B matures in October 2033 and is priced at SOFR +175 basis points."

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

amortization financial

"Quarterly amortization payments will equal 0.25% of the initial aggregate principal amount"

Amortization is the process of spreading a large cost over a series of future periods, either by gradually writing off the value of an intangible asset (like a patent or license) or by showing how loan principal is paid down over time. For investors it matters because amortization affects reported profits and cash flow — similar to slicing a big bill into smaller monthly payments — and therefore influences valuations, comparisons between companies, and expectations for future earnings.

administrative agent financial

"JPMorgan Chase Bank, N.A., acted as the administrative agent for the transaction."

An administrative agent is a bank or financial firm appointed to handle the day-to-day paperwork and communication for a group of lenders on a loan or credit agreement, acting as the central point for collecting payments, distributing funds, monitoring covenants, and sharing information. For investors, the administrative agent matters because it influences how quickly lenders receive updates, how smoothly repayments and waivers are handled, and how effectively the lending group enforces terms — think of it as a property manager coordinating tasks for multiple owners.

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CONSHOHOCKEN, Pa., Oct. 1, 2026 /PRNewswire/ -- Quaker Houghton (NYSE: KWR), the global leader in industrial process fluids, announced today that it has successfully closed on a new 7-year U.S. dollar-denominated Term Loan B facility with an aggregate principal amount of $550 million. The Term Loan B amends the Company's existing Credit Agreement, and proceeds will be used to repay in full the U.S. Term Loans outstanding under that agreement.

The Term Loan B matures in October 2033 and is priced at SOFR +175 basis points. Quarterly amortization payments will equal 0.25% of the initial aggregate principal amount of the loan, with the balance due at maturity.

Commenting on the transaction, Joseph Berquist, Chief Executive Officer, said, "The completion of this Term Loan B provides greater flexibility in our capital structure by extending our debt maturity profile and reducing required annual debt payments. This transaction positions us to continue investing in strategic growth initiatives while maintaining our commitment to disciplined capital allocation and value creation. We are pleased with the strong support from the lending community, which reflects confidence in Quaker Houghton's market leadership, cash flow generation, and long-term growth strategy."

JPMorgan Chase Bank, N.A., acted as the administrative agent for the transaction.

About Quaker Houghton

Quaker Houghton is the global leader in industrial process fluids. With a presence around the world, including operations in over 25 countries, our customers include thousands of the world's most advanced and specialized steel, aluminum, automotive, aerospace, offshore, can, mining, and metalworking companies. Our high-performing, innovative and sustainable solutions are backed by best-in-class technology, deep process knowledge and customized services. With approximately 4,700 employees, including chemists, engineers and industry experts, we partner with our customers to improve their operations so they can run even more efficiently, even more effectively, whatever comes next. Quaker Houghton is headquartered in Conshohocken, Pennsylvania, located near Philadelphia in the United States. Visit quakerhoughton.com to learn more.

Forward-Looking Statements

This press release contains "forward-looking statements" that fall under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Act of 1933, as amended. These statements can be identified by the fact that they do not relate strictly to historical or current facts. We have based these forward-looking statements on assumptions, projections and expectations about future events that we believe are reasonable based on currently available information, including statements regarding the potential effects of economic downturns; tariffs, including retaliatory tariffs, "trade wars" and uncertainty surrounding changes in tariffs; inflation and global supply chain constraints on the Company's business, results of operations, and financial condition; our expectation that we will maintain sufficient liquidity and remain in compliance with the terms of the Company's credit facility; expectations about future demand and raw material costs; and statements regarding the impact of increased raw material costs and pricing initiatives. These forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, intentions, financial condition, results of operations, future performance, and business, which may differ materially from our actual results, including but not limited to the potential benefits of acquisitions and divestitures, the impacts on our business as a result of global supply chain constraints and other macroeconomic stresses and uncertainties, including political and geopolitical events, civil disturbances and endemics/pandemics or extreme weather events and other natural disasters that may adversely affect regional economic conditions, and our current and future results and plans and statements that include the words "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "outlook," "target," "possible," "potential," "plan" or similar expressions. Such statements include information relating to current and future business activities, operational matters, capital spending, and financing sources. A major risk is that demand for the Company's products and services is largely derived from the demand for its customers' products, which subjects the Company to uncertainties related to downturns in a customer's business and unanticipated customer production slowdowns and shutdowns. Other major risks and uncertainties include, but are not limited to, inflationary pressures, including increases in raw material costs; supply chain constraints and the impacts of economic downturns; customer financial instability; high interest rates and their impact on our and our customers' business operations; the impacts from acts of war, terrorism and military conflicts, including those in Ukraine and the Middle East as well as economic, political and governmental actions taken by various governments and government organizations in response; economic and political disruptions particularly in light of numerous elections globally and the possibility of regime changes; the possibility of economic recession; legislative and regulatory developments including changes to existing laws and regulations, or the way they are interpreted, applied or enforced; tariffs, trade restrictions, and the economic and other sanctions imposed by other nations on Russia and Belarus and/or other government organizations; suspensions of activities in Russia by many multinational companies; foreign currency fluctuations; significant changes in applicable tax rates and regulations and the potential impacts therefrom, including those arising from H.R.1, commonly known as the "One Big Beautiful Bill Act"; terrorist attacks and other acts of violence; the impacts of consolidation in our industry, including loss or consolidation of a major customer, the effects of climate change, fires, or other natural disasters; and the potential occurrence of cyber-security breaches, cyber-security attacks and other technology outages and security incidents. Furthermore, the Company is subject to the same business cycles as those experienced by our customers in the steel, automobile, aircraft, industrial equipment, aluminum and durable goods industries. Our forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its operations that are subject to change based on various important factors, some of which are beyond our control. These risks, uncertainties, and possible inaccurate assumptions relevant to our business could cause our actual results to differ materially from expected and historical results. All forward-looking statements included in this press release, including expectations about future periods, are based upon information available to the Company as of the date of this press release, which may change. Therefore, we caution you not to place undue reliance on our forward-looking statements. For more information regarding these risks and uncertainties as well as certain additional risks that we face, refer to the Risk Factors section, which appears in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent reports filed from time to time with the Securities and Exchange Commission. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.

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SOURCE Quaker Houghton

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the terms of Quaker Houghton's new Term Loan B refinancing?

The new $550 million U.S. dollar-denominated facility has a seven-year term and matures in October 2033. Pricing is SOFR plus 175 basis points. Quarterly principal repayments equal 0.25% of the initial loan amount, with the balance due at maturity.

How will Quaker Houghton use the Term Loan B proceeds?

Proceeds will repay in full the U.S. Term Loans outstanding under the existing Credit Agreement. The new facility amends that agreement, and the transaction is described as leverage-neutral.