KWR · Quaker Chemical Corporation

Quaker Chemical Corporation (KWR) executed Amendment No. 4 to its 2019 credit agreement on April 10, 2026, effective upon filing on April 14, 2026, fundamentally refinancing its debt structure. The amendment establishes three new senior secured facilities totaling $1.6B: a $550M USD term loan to the Company, a € equivalent $250M euro term loan to wholly-owned subsidiary Quaker Houghton B.V., and an $800M revolving credit facility available to the Company and designated subsidiaries. All facilities mature April 10, 2031, extending the company's nearest debt maturity by approximately five years from prior terms and significantly enhancing liquidity with a 60% increase in revolver capacity over the prior facility.

Proceeds from the new term loans and initial revolver borrowings fully repaid all outstanding obligations under the existing agreement (U.S./Euro term loans and revolver), terminating prior commitments. Remaining proceeds support working capital, liquidity needs, and strategic priorities including M&A and capital allocation, as highlighted in the Exhibit 99.1 press release. CEO Joseph Berquist emphasized the transaction strengthens the balance sheet, providing 'increased financial flexibility' for organic growth and acquisitions.

Key terms include SOFR/alternative currency rates plus applicable margins (1.00%-1.75% over SOFR, 0.00%-0.75% over Base Rate), secured by first-priority liens on substantially all domestic assets (exclusions apply). Financial covenants maintain Consolidated Net Leverage ≤4.25x (with secured net leverage option ≤3.50x post-unsecured notes issuance) and Interest Coverage ≥2.75x, with dividend/share repurchase baskets tied to EBITDA and market cap. Incremental capacity up to greater of $331M or 100% EBITDA plus ratio-based unlimited tranche supports future needs.

The refinancing de-risks near-term maturities amid healthy balance sheet metrics, positioning KWR for growth while preserving covenant flexibility. Sixteen-bank syndicate led by Bank of America; solvency certification and no Material Adverse Effect since Dec 31, 2025 confirmed effectiveness.