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# Olin Lines Up $2.5 Billion In Credit To Fund Huntsman Merger
- URL: https://www.bullished.co/olin-lines-up-2-5-billion-in-credit-to-fund-huntsman-merger-5e0c072e/
- Published: 2026-10-28T12:36:47.000Z
- Updated: 2026-10-28T12:36:47.000Z
- Description: A $750 million term loan and $1.75 billion revolver would replace Olin's credit agreement, with leverage limits tightening to 4.00 to 1.00 by 2029.
- Author: Matteo Parrino
- Tags: Deals, OLN, Industry: Materials

Olin, which makes chemicals and Winchester ammunition, has lined up a new [$750 million term loan and a $1.75 billion revolving credit facility](https://www.sec.gov/Archives/edgar/data/0000074303/000095015726001129/form8-k.htm?ref=bullished.co), according to an 8-K disclosed Wednesday. The amendments were signed Tuesday and take effect only if its merger of equals with Huntsman closes.

## Refinancing both companies' bank debt

Both facilities mature five years after the closing date. The term loan is expected to be fully drawn at closing, and the proceeds would refinance loans and commitments under Olin's existing credit agreement and repay and terminate Huntsman's revolving credit facility. Anything left over would go to working capital and general corporate purposes.

Borrowings would carry interest at SOFR, EURIBOR or SONIA plus 1.500% to 2.125%, or at the base rate plus 0.500% to 1.125%, depending on Olin's net leverage ratio. The term loan would amortize quarterly at 1.250% of the original principal through the quarter that includes the fourth anniversary of closing, and 1.875% per quarter after that.

While the loans are secured by guarantees and first-priority liens on certain assets, Olin must prepay the term loans with net cash from certain asset sales and casualty events, subject to reinvestment rights.

## Leverage limits that tighten through 2029

During that secured period, Olin must keep net leverage at or below 5.50 to 1.00 for quarters ending on or before March 31, 2027\. The cap steps down to 4.00 to 1.00 for the quarter ending March 31, 2029 and after. Interest coverage must stay at or above 2.50 to 1.00 through September 30, 2027, rising to 3.00 to 1.00 by March 31, 2029.

Once the collateral is released, the limits are 4.00 to 1.00 on leverage and 3.00 to 1.00 on coverage. Dividends beyond regular scheduled payments are restricted.

Covenant earnings can include cost-savings add-backs capped at $300 million, [reduced dollar-for-dollar](https://www.sec.gov/Archives/edgar/data/0000074303/000095015726001129/ex4-1.htm?ref=bullished.co) by merger synergies already realized.

## A companion bond amendment

Olin and Olin Winchester also amended a funding agreement with PNC Bank and other lenders tied to Mississippi and Tennessee bonds. It [removes the highest pricing tier](https://www.sec.gov/Archives/edgar/data/0000074303/000095015726001129/ex4-1.htm?ref=bullished.co) and raises the bond interest rate, with pricing of 100.0 to 175.0 basis points based on leverage. It also aligns the financial covenants with the new credit agreement.

The new pricing grid applies to each series only if tax-exempt conditions are met by February 15, 2027\. If none are, the bonds accrue interest from February 16, 2027 on a taxable pricing grid of 125.0 to 212.5 basis points.

The new facilities hinge on the Huntsman merger closing, and the bond conditions run to February 15, 2027.

### Sources

- [8-K Filing — OLIN Corp (OLN)](https://www.sec.gov/Archives/edgar/data/0000074303/000095015726001129/form8-k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ex4-1.htm — OLIN Corp 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000074303/000095015726001129/ex4-1.htm?ref=bullished.co) — SEC EDGAR