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  4. [8-K] AdvanSix Inc. Reports Material Event

AdvanSix (NYSE: ASIX) lines up $425M secured credit to 2031

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

AdvanSix Inc. entered into a new senior secured credit agreement with Citizens Bank providing a $275 million Revolving Credit Facility and a $150 million Term Facility, both maturing on August 14, 2031. The revolver includes sublimits of $40 million for letters of credit and $40 million for swing line loans.

Term loans amortize quarterly at 2.50% per year in the first year, 5.00% in years two through four, and 7.50% in year five, with the balance due at maturity. Borrowings bear interest at a base rate plus 0.50%–1.50% or Term SOFR plus 1.50%–2.50%, depending on the Consolidated Leverage Ratio, and unused revolver commitments carry a 0.20%–0.40% fee. At closing, AdvanSix drew $145 million on the revolver and $150 million on the term loan and held about $17 million of cash, using proceeds to refinance its prior facility and for general corporate purposes. The agreement is secured by substantially all tangible and intangible assets and includes financial covenants requiring a maximum 3.75x Consolidated Leverage Ratio and minimum 3.00x Consolidated Interest Coverage Ratio; noncompliance could result in accelerated repayment.

Positive

  • New facilities provide $425 million of committed senior secured financing with maturity extended to 2031, enhancing liquidity visibility.
  • Refinancing fully repaid obligations under the prior credit agreement, simplifying the capital structure and resetting terms with a new lender group.

Negative

  • Facilities are secured by substantially all tangible and intangible assets, increasing encumbrance of the asset base.
  • Financial covenants, including a maximum 3.75x Consolidated Leverage Ratio and minimum 3.00x Interest Coverage, create risk of accelerated repayment if breached.

Filing Explained

The August 14 refinancing is complete: AdvanSix paid the prior facility in full, terminated its commitments, and released its related guarantees and security interests. The new facilities remain outstanding and secured by substantially all assets, so the filing confirms a completed replacement of the debt structure rather than merely a proposed refinancing.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 1.02 Termination of a Material Definitive Agreement Business
A significant contract was terminated, which may affect business operations or revenue.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Revolving Credit Facility size $275 million Aggregate principal amount of new senior secured revolving credit facility
Term Facility size $150 million Aggregate principal amount of new senior secured term loan facility
Revolver drawn at closing $145 million Borrowed under the Revolving Credit Facility as of the Closing Date
Term loan drawn at closing $150 million Borrowed under the Term Facility as of the Closing Date
Cash on hand at closing $17 million Approximate cash balance after borrowings on the Closing Date
Facility maturity August 14, 2031 Scheduled maturity date for both the Revolving Credit Facility and Term Facility
Maximum leverage covenant 3.75 to 1.00 Required maximum Consolidated Leverage Ratio each fiscal quarter
Minimum interest coverage covenant 3.00 to 1.00 Required minimum Consolidated Interest Coverage Ratio each fiscal quarter
Revolving Credit Facility financial
"provides for a new senior secured revolving credit facility in an aggregate principal amount"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
Term Facility financial
"a new senior secured term loan facility in an aggregate principal amount"
A term facility is a loan that a borrower takes out for a fixed period with a set repayment schedule and usually a fixed or variable interest rate, similar to a mortgage with a set end date. Investors care because it changes a company’s debt timeline and cash commitments — knowing when principal must be repaid and how much interest will be paid helps assess financial risk, cash flow stability, and the need for future refinancing.
Term SOFR rate financial
"the sum of a Term SOFR rate plus a margin ranging from 1.50% to 2.50%"
Term SOFR rate is a forward-looking interest rate for a set period (for example one or three months) based on the overnight cost of borrowing cash using Treasury securities as collateral. Think of it as a quoted, agreed-upon lending rate for a future interval, like locking in the expected short-term borrowing cost ahead of time. Investors care because it is used to price loans, bonds and derivatives as a transparent replacement for older benchmarks, affecting interest payments and valuation.
Consolidated Leverage Ratio financial
"margin varying according to the Company’s Consolidated Leverage Ratio"
A consolidated leverage ratio measures a business group's total debt compared with its ability to pay, by using combined figures for the parent company and its subsidiaries. Think of it like comparing the total mortgage across all properties you own to your overall income or net worth; investors use it to judge how risky the company’s capital structure is and how vulnerable it may be to rising interest rates or income drops.
Consolidated Interest Coverage Ratio financial
"require the Company to maintain a Consolidated Interest Coverage Ratio"
A consolidated interest coverage ratio measures how easily a company and all its subsidiaries can pay the interest on their debt from their operating profits. It divides the group’s operating profit (earnings before interest and taxes) by the interest expenses; a higher number is like having more months of income set aside to cover loan payments, which matters to investors because it signals financial stability and lower default risk.
swing line loans financial
"utilize up to $40 million of the Revolving Credit Facility for swing line loans"

FAQ

What new credit facilities did AdvanSix (ASIX) enter into on August 14, 2026?
AdvanSix entered into a new senior secured credit agreement with a $275 million Revolving Credit Facility and a $150 million Term Facility. Both facilities mature on August 14, 2031 and are agented by Citizens Bank, N.A.

How much did AdvanSix (ASIX) borrow at closing under the new facilities?
At closing, AdvanSix borrowed $145 million under the new Revolving Credit Facility and $150 million under the Term Facility. It reported having approximately $17 million of cash on hand after these borrowings.

What are the interest rate terms on AdvanSix’s (ASIX) new credit facilities?
Borrowings bear interest at either a base rate plus 0.50%–1.50% or Term SOFR plus 1.50%–2.50%. The exact margin depends on AdvanSix’s Consolidated Leverage Ratio, creating a pricing grid linked to leverage levels.

What financial covenants apply under AdvanSix’s (ASIX) new Credit Agreement?
AdvanSix must maintain a Consolidated Interest Coverage Ratio of at least 3.00 to 1.00 and a Consolidated Leverage Ratio of no more than 3.75 to 1.00 each fiscal quarter, subject to limited increase options for certain acquisitions.

How will AdvanSix (ASIX) use the proceeds from the new credit facilities?
Proceeds at closing were used to refinance the existing credit agreement, pay related fees and expenses, and for general corporate purposes. The company expects future revolver borrowings also to support general corporate purposes.

What collateral secures AdvanSix’s (ASIX) new credit facilities?
Obligations under the new Credit Agreement are secured by substantially all tangible and intangible assets of AdvanSix and its material domestic subsidiaries, providing comprehensive collateral coverage to the lending group.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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false 0001673985 0001673985 2026-08-14 2026-08-14 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

  

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

Form 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 14, 2026

 

ADVANSIX INC.

(Exact name of Registrant as specified in its Charter)

 

Delaware

(State or other jurisdiction

of incorporation)

  

1-37774

(Commission File

Number)

  

81-2525089

(I.R.S. Employer

Identification No.)

 

300 Kimball Drive, Suite 101

Parsippany, New Jersey 07054

(Address of principal executive offices)

 

Registrant’s telephone number, including area code: (973) 526-1800

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.01 per share   ASIX   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

 

 

 

 

 
 

 

ITEM 1.01Entry into a Material Definitive Agreement.

 

Credit Agreement

 

On August 14, 2026 (the “Closing Date”), AdvanSix Inc. (the “Company”) completed a refinancing of its existing senior secured revolving credit facility under that certain Credit Agreement, dated as of October 27, 2021 (as amended by Amendment No. 1, dated June 27, 2023, Amendment No. 2, dated October 23, 2025, and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”), among the Company, the lenders party thereto and Truist Bank, as administrative agent, by entering into a new Credit Agreement (the “Credit Agreement”), among the Company, the lenders from time to time party thereto and Citizens Bank, N.A., as administrative agent, which provides for a new senior secured revolving credit facility in an aggregate principal amount of $275 million (the “Revolving Credit Facility”) and a new senior secured term loan facility in an aggregate principal amount of $150 million (the “Term Facility” and, together with the Revolving Credit Facility, the “Facilities”). Any capitalized terms not defined herein shall have the definitions ascribed to them in the Credit Agreement.

 

Each of the Revolving Credit Facility and the Term Facility has a scheduled maturity date of August 14, 2031. The Credit Agreement permits the Company to utilize up to $40 million of the Revolving Credit Facility for the issuance of letters of credit and up to $40 million for swing line loans. The loans under the Term Facility will amortize in equal quarterly installments at a per annum percentage rate equal to (i) 2.50% for the first year following the Closing Date, (ii) 5.00% for each of the second, third and fourth years following the Closing Date and (iii) 7.50% for the fifth year following the Closing Date, in each case, as a percentage of the original principal amount of the Term Facility, commencing with the full fiscal quarter following the Closing Date, with the remaining balance to be due at the maturity of the Term Facility.

 

Borrowings under the Credit Agreement bear interest at a rate equal to either (i) the sum of a base rate plus a margin ranging from 0.50% to 1.50% or (ii) the sum of a Term SOFR rate plus a margin ranging from 1.50% to 2.50%, with either such margin varying according to the Company’s Consolidated Leverage Ratio (as defined in the Credit Agreement). The Company is also required to pay a commitment fee in respect of unused commitments under the Revolving Credit Facility, if any, at a rate ranging from 0.20% to 0.40% per annum depending on the Company’s Consolidated Leverage Ratio. The applicable margin as of the date hereof under the Credit Agreement is 1.00% for base rate loans and 2.00% for Term SOFR rate loans and the commitment fee rate as of the date hereof is 0.30% per annum.

 

Substantially all tangible and intangible assets of the Company and its material domestic subsidiaries are pledged as collateral to secure the obligations under the Credit Agreement.

 

As of the Closing Date, the Company has borrowed $145 million under the Revolving Credit Facility and $150 million under the Term Facility, with approximately $17 million of cash on hand. The proceeds of the Facilities borrowed on the Closing Date were used to refinance outstanding obligations under the Existing Credit Agreement, pay fees, costs and expenses associated therewith and, to the extent of any remaining proceeds, for general corporate purposes for the Company and its subsidiaries. The Company expects to use the proceeds of future borrowings under the Revolving Credit Facility for general corporate purposes of the Company and its subsidiaries. Future borrowings under the Revolving Credit Facility will be subject to customary borrowing conditions.

 

The Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, pay cash dividends, incur debt or liens, redeem or repurchase stock of the Company, enter into transactions with affiliates, make investments, merge or consolidate with others or dispose of assets. The Credit Agreement also contains financial covenants that require the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of not less than 3:00 to 1:00 and to maintain a Consolidated Leverage Ratio of 3.75 to 1.00 or less for each fiscal quarter (subject to the Company’s option to elect a consolidated leverage ratio increase in connection with certain acquisitions). If the Company does not comply with the covenants in the Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Facilities.

 

The foregoing description of the Facilities does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and which is incorporated by reference herein.

 

 
 

 

ITEM 1.02Termination of a Material Definitive Agreement.

 

On August 14, 2026, the outstanding loans under the Existing Credit Agreement were paid in full (together with accrued interest and fees thereunder), the commitments to extend credit under the Existing Credit Agreement were terminated, and all guarantees and security interests in respect of the Existing Credit Agreement were released.

 

ITEM 2.03Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

 

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

 

ITEM 9.01Financial Statements and Exhibits.

 

(d) Exhibits

 

 

 

Exhibit Number 

   Description
     
10.1   Credit Agreement, dated as of August 14, 2026, among AdvanSix Inc., the lenders from time to time party thereto and Citizens Bank, N.A., as administrative agent
     
104  

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 
 

 

SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: August 17, 2026

 

  AdvanSix Inc.
   
  By: /s/ Achilles B. Kintiroglou  
  Name: Achilles B. Kintiroglou  
  Title:

Senior Vice President, General

Counsel and Corporate Secretary

  

 

 

 

Source: View Original Filing on SEC EDGAR

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