### Arcadium Lithium Secures $500 Million Term Loan Facilities with Rio Tinto PLC

Arcadium Lithium PLC, a leading player in the lithium sector, announced a significant development in its financial structure. According to an 8-K filing with the Securities and Exchange Commission on January 23, 2025, the company has entered into a commitment letter with Rio Tinto PLC for term loan facilities totaling $500 million.

The deal includes a first lien secured term loan facility of $200 million, known as the Pari Passu Term Loan Facility, and a second lien secured term loan facility of $300 million, termed the Junior Term Loan Facility. These facilities are subject to certain conditions stipulated in the Commitment Letter between the two entities.

Under the terms of the agreement, the Term Loan Facilities will be guaranteed by entities that also guarantee obligations under an existing credit agreement as of September 1, 2022. The Pari Passu Term Loan Facility will be secured by first-priority liens on assets, while the Junior Term Loan Facility will be supported by second-priority liens on the same assets.

The utilization of the Term Loans is intended for specific capital expenditure payments within Arcadium Lithium and its subsidiaries. The principal amount, along with accumulated interest, is due by September 1, 2027. The company retains the option to prepay the loans partially or in full without any penalty, subject to minimum thresholds.

Interest on the Term Loans will be calculated at an adjusted term SOFR rate plus an applicable margin, following the terms outlined in the Credit Agreements. The documentation will include usual representations, warranties, and covenants such as limitations on indebtedness, liens, and fundamental changes, among others.

These Credit Agreements will also align with financial covenants established under the Existing Revolving Credit Facility. They will require Arcadium Lithium to maintain specific leverage ratio and interest coverage ratio thresholds. Various events of default are enumerated, including non-payment, breaches of covenants, insolvency events, and a change of control, allowing the lender to accelerate obligations in such instances.

Alongside the announcement, a Commitment Letter dated January 22, 2025, between Arcadium Lithium and Rio Tinto PLC was disclosed, highlighting the foundational agreement for these significant financial arrangements. The filing also includes an Exhibit detailing this Commitment Letter for reference.

This move unveils a strategic financial initiative for Arcadium Lithium, signaling a substantial step in securing funding and advancing its operational objectives.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Arcadium Lithium’s 8K filing here.

About Arcadium Lithium

Arcadium Lithium plc engages in the production of lithium chemicals products in the Asia Pacific, North America, Europe, the Middle East, Africa, and Latin America. It offers battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal for electric vehicles, electronics, agricultural, industrial, greases, polymers, pharmaceutical, battery, and aerospace applications.