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Cabot Corporation (CBT) secures $1.3B revolver, replaces 2027 credit lines

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

Rhea-AI Filing Summary

Cabot Corporation entered into a new $1.3 billion unsecured revolving credit agreement with a syndicate of banks arranged by JPMorgan entities. The multi-currency facility is for general corporate purposes and matures on May 12, 2031, extending the company’s access to committed liquidity.

Loans will bear interest at a Term Benchmark or RFR Spread rate plus a margin between 0.68% and 1.20%, depending on Cabot’s credit ratings. The agreement includes a quarterly leverage test, requiring net debt not to exceed 3.75x consolidated EBITDA, rising to 4.25x for a limited period following any material acquisition.

At the same time, Cabot terminated its prior $1 billion revolving credit agreement and separate €300 million revolving credit agreement, both of which had been scheduled to mature on August 6, 2027. The new facility consolidates these arrangements under a single, larger long-term credit line.

Positive

  • None.

Negative

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Insights

Cabot refinances and upsizes liquidity with longer-tenor bank line.

Cabot Corporation put in place a $1.3 billion unsecured revolving credit facility maturing in 2031, while terminating prior $1 billion and €300 million revolvers that were due in 2027. This consolidates bank funding into a single, larger, multi-currency line for general corporate purposes.

The agreement links pricing to Cabot’s credit ratings, with a margin between 0.68% and 1.20% over benchmark rates, and introduces a leverage covenant of 3.75x net debt to consolidated EBITDA, temporarily stepping up to 4.25x after material acquisitions. These terms frame how much balance sheet flexibility Cabot has while staying in compliance.

Investors can use the May 12, 2031 maturity and the leverage thresholds to understand Cabot’s committed banking support and tolerance for acquisition-related leverage. Subsequent filings may detail how much of this revolver is actually drawn and how leverage trends relative to the 3.75x covenant.

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.
New revolver size $1.3 billion Unsecured revolving credit facility entered May 12, 2026
Facility maturity May 12, 2031 Maturity date of new revolving credit agreement
Interest margin range 0.68%–1.20% Margin over Term Benchmark or RFR Spread, rating-based
Leverage covenant 3.75x Maximum net debt to consolidated EBITDA, tested quarterly
Acquisition leverage step-up 4.25x Temporary maximum leverage after a material acquisition
Former USD revolver $1 billion Prior revolving credit agreement terminated May 12, 2026
Former EUR revolver €300 million Prior euro revolver terminated; had 2027 maturity
Former maturities August 6, 2027 Scheduled maturity date of both terminated facilities
revolving credit agreement financial
"entered into a $1.3 billion unsecured revolving credit agreement"
A revolving credit agreement is a flexible loan arrangement where a borrower can borrow, repay, and borrow again up to a set limit, similar to a credit card. It matters because it gives businesses or individuals quick access to funds whenever needed, helping manage cash flow and cover expenses without applying for a new loan each time.
Term Benchmark financial
"loans will bear interest at the Term Benchmark or RFR Spread"
RFR Spread financial
"bear interest at the Term Benchmark or RFR Spread, as applicable"
leverage test financial
"comply on a quarterly basis with a leverage test requiring net debt"
consolidated EBITDA financial
"not to exceed consolidated EBITDA for the four quarters then ending"
Consolidated EBITDA is a measure of a parent company’s total operating earnings across all its subsidiaries, calculated before interest, taxes, depreciation and amortization (non‑cash charges). It shows the group’s raw cash‑generation and operating performance independent of financing and accounting choices, so investors use it like comparing the horsepower of an entire fleet rather than individual cars to judge core profitability and to compare firms on a more even footing.
material acquisition financial
"Following the consummation of any material acquisition, the maximum leverage ratio"
Understanding 8-K Material Events →
CABOT CORP false 0000016040 0000016040 2026-05-12 2026-05-12
 
 

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): May 12, 2026

 

 

Cabot Corporation

(Exact name of Registrant as Specified in Its Charter)

 

 

 

Delaware   1-5667   04-2271897

(State or Other Jurisdiction

of Incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

 

2 Seaport Lane, Suite 1400, Boston, MA   02210-2019
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 345-0100

 

 

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 communication 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 communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

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. ☐

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, $1 par value per share   CBT   New York Stock Exchange

 

 
 

Item 1.01

Entry into a Material Definitive Agreement.

On May 12, 2026, Cabot Corporation (the “Company”) entered into a $1.3 billion unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of lenders arranged by JPMorgan Chase Bank, N.A. and JPMorgan SE, as Administrative Agents, JPMorgan Chase Bank, N.A., Citibank, N.A., U.S. Bank, National Association and PNC Capital Markets LLC, as Joint Lead Bookrunners and Joint Lead Arrangers, Bank of America, N.A., ING Bank N.V. Dublin Branch and Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, as Joint Lead Arrangers and Co-Documentation Agents, and Citibank, N.A., as Syndication Agent.

Borrowings under the Credit Agreement may be made in multiple currencies and will be used for general corporate purposes. The facility matures on May 12, 2031. At the Company’s election, loans will bear interest at the Term Benchmark or RFR Spread, as applicable, rate plus an applicable margin of between 0.68% and 1.20%, depending on the Company’s credit ratings. The Credit Agreement requires the Company to comply on a quarterly basis with a leverage test requiring net debt (with the ability to offset such debt by the lesser of (i) unrestricted cash and cash equivalents and (ii) $200 million) not to exceed consolidated EBITDA for the four quarters then ending by more than 3.75 to 1.00. Following the consummation of any material acquisition, the maximum leverage ratio shall be increased to 4.25 to 1.00, as of the end of the fiscal quarter in which such material acquisition occurs and the three fiscal quarters immediately thereafter. Consistent with the Company’s former $1 billion revolving credit agreement, the Credit Agreement also includes customary negative covenants, representations and warranties, affirmative covenants and events of default.

This description is a summary and is qualified in its entirety by reference to the Credit Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K.

 

Item 1.02

Termination of a Material Definitive Agreement.

Concurrently with entering into the Credit Agreement, on May 12, 2026, the Company terminated (i) its $1 billion revolving credit agreement with JPMorgan Chase Bank, N.A. and the other lenders party thereto, which, by its terms, was scheduled to mature on August 6, 2027, and (ii) its €300 million revolving credit agreement with PNC Bank, National Association, and the other lenders party thereto, which, by its terms, was also scheduled to mature on August 6, 2027.

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

The information set forth above under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

 

Item 9.01

Financial Statements and Exhibits.

 

Exhibit
No.

   

Description

10.1*    Credit Agreement, dated May 12, 2026, by and among Cabot Corporation, JPMorgan Chase Bank, N.A., J.P. Morgan SE, Citibank, N.A., PNC Bank, National Association, Bank of America, N.A., U.S. Bank, National Association, ING Bank N.V. Dublin Branch, Banco Bilbao Vizcaya Argentaria, S.A., and the other lenders party thereto.
104*    Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

*

Filed herewith.

 

SIGNATURES

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

 

CABOT CORPORATION
By:  

/s/ Lisa M. Dumont

Name:   Lisa M. Dumont
Title:   Vice President, Controller and
Chief Accounting Officer

Date: May 14, 2026

Source: View Original Filing on SEC EDGAR

FAQ

What new credit facility did Cabot Corporation (CBT) enter into on May 12, 2026?

Cabot Corporation entered a new unsecured revolving credit agreement for $1.3 billion. The multi-currency facility is provided by a syndicate of banks and is intended for general corporate purposes, giving Cabot flexible borrowing capacity within agreed covenants and pricing tiers.

When does Cabot Corporation’s new $1.3 billion revolving credit facility mature?

The new $1.3 billion revolving credit facility for Cabot Corporation matures on May 12, 2031. This significantly extends the company’s committed bank financing horizon compared with its prior revolving credit agreements that had been scheduled to mature on August 6, 2027.

How is interest determined under Cabot Corporation’s new credit agreement?

Borrowings under Cabot’s new facility bear interest at a Term Benchmark or RFR Spread rate plus a margin of 0.68% to 1.20%. The exact margin depends on Cabot Corporation’s credit ratings, so better ratings correspond to lower borrowing spreads over the reference rate.

What leverage covenant applies in Cabot Corporation’s new revolving credit facility?

Cabot must keep net debt from exceeding 3.75 times consolidated EBITDA for the last four quarters, tested quarterly. Following any material acquisition, the maximum leverage ratio temporarily increases to 4.25 times for the quarter of closing and the next three fiscal quarters.

Which previous credit agreements did Cabot Corporation terminate when signing the new facility?

Cabot terminated a $1 billion revolving credit agreement and a separate €300 million revolving credit agreement. Both prior facilities were scheduled to mature on August 6, 2027, and have been replaced by the single, larger revolving credit facility maturing in 2031.

What will Cabot Corporation use the new $1.3 billion credit facility for?

Cabot plans to use borrowings under the new $1.3 billion revolving credit agreement for general corporate purposes. This broad formulation typically covers working capital, refinancing, potential acquisitions, and other corporate needs consistent with the agreement’s covenants and restrictions.

Filing Exhibits & Attachments

4 documents

Agreements & Contracts

Other Documents