Narrative
Full Description
Project narrative
On September 28, 2018, financial close was reached on a deal in which a syndicate of eight banks—including ICBC—entered into a $400,000,000 USD syndicated loan agreement with Livent Corporation and its subsidiary FMC Lithium USA Corp., both Delaware-based corporations involved in the lithium production and processing industry. The purpose of this loan was to support the separation of Livent’s business from FMC Corporation. The maturity of the loan is September 28, 2023 (5 years), and the interest rate is LIBOR plus the company’s leverage ratio (2%-2.75%). The use of proceeds is for general corporate purposes (including capital expenditures and Permitted Acquisitions) of each Borrower and its subsidiaries or for the purposes of making any payments. While ICBC contributed $40 million USD to this loan, the following lenders also participated: Citibank, N.A., Bank of America, N.A., Credit Suisse Loan Funding LLC, Goldman Sachs Bank USA, Citizens Bank, N.A., JPMorgan Chase Bank, N.A., Sumitomo Mitsui Banking Corporation. Two of Livent’s domestic subsidiaries, FMC Asia-Pacific, Inc. and FMC Lithium Overseas LTD., served as guarantors for the credit. On September 1, 2022, the company entered into a new RCF worth $500 million and replaced the existing agreement. The new RCF does not involve Chinese banks.
Staff comments
1. Livent Corporation was a US-based lithium company created after the restructuring of FMC’s Lithium Business in July 2018. FMC Corporation is an American chemical manufacturing company headquartered in Philadelphia, Pennsylvania, which originated as an insecticide producer in 1883 and later diversified into other industries. After the restructuring, FMC Lithium USA became a subsidiary of Livent Corporation. In January 2024, Livent Corporation and Australian lithium producer Allkem agreed to merge and created Arcadium Lithium, a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people’s lives and accelerate the transition to a clean energy future. 2. AidData does not have enough information to estimate the interest rate for the revolving credit facility due to the leverage ratio of the company. However, AidData estimates the range of the interest by adding the 6-month average LIBOR rate in September 2018 and the applicable rate based on the leverage ratio spread. The total interest is between (2.63%+2~2.75) 4.63% and 5.38%.