PPG gets €500 million term loan at Euribor plus 79 bps

By Wendy Van Sickle

Columbus, Ohio, April 18 – PPG Industries, Inc. entered into a €500 million term loan with Banco Bilbao Vizcaya Argentaria, SA New York Branch as administrative agent on April 12, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings may be made in euros.

Loans will bear interest at Euribor plus 79 basis points.

The company may increase the size of the credit agreement by up to €250 million.

The company drew the full amount at closing and expects to use proceeds for general corporate purposes, which may include repaying existing debt.

The maturity date is April 10, 2026.

The credit agreement also requires the company to maintain a ratio of total indebtedness to total capitalization of 60% or less, provided, that for any fiscal quarter in which the company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters, the ratio of total indebtedness to total capitalization may not exceed 65% at any time.

BBVA Securities Inc. is the lead arranger and bookrunner.

PPG is a diversified coatings and chemical manufacturing company based in Pittsburgh.

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