FMC · FMC Corporation

FMC Corporation's Amendment No. 6 to its existing Credit Agreement, originally dated June 17, 2022, represents a significant restructuring of its debt covenants amid apparent covenant pressures, as evidenced by the explicit waiver for the Maximum Leverage Ratio noncompliance in the fiscal quarter ended March 31, 2026. This waiver, granted by all Lenders, addresses an immediate compliance issue without waiving other obligations or future requirements. Key modifications include adjustments to the maximum leverage and minimum interest coverage ratios for specified quarters, alongside the introduction of a new maximum secured leverage ratio capped at 3.50 to 1.00 at each fiscal quarter-end, signaling tighter ongoing financial discipline. Critically, the Company and certain subsidiaries have designated themselves as guarantors and pledged collateral including assets, equity interests, trademarks, patents, and copyrights via a new Guarantee and Collateral Agreement and related documents. This shift to a secured facility enhances lender protections but imposes new negative covenants restricting liens, fundamental changes, indebtedness, and material asset transfers. The comprehensive closing conditions, including UCC filings, legal opinions, solvency certification, and KYC compliance, ensure enforceability. For investors, this amendment mitigates short-term default risk while imposing stricter long-term leverage constraints and collateral obligations, potentially limiting financial flexibility but stabilizing access to the revolving credit facility amid operational challenges.