Sigma-Aldrich tapped the accordion feature of its most recent credit facility last month to keep a consistent level of liquidity. The company doubled the size of its $150 million revolver to $300 million to continue to provide back-up liquidity for its commercial paper program. Kirk Richter, treasurer, said the company exercised the accordion because an existing $150 million credit facility from 2001 that provided liquidity for the program had expired.
St. Louis-based Sigma-Aldrich entered into the commercial paper program in 2002 to replace existing bank debt and lower interest costs by 50 basis points. It used two $150 million credit lines led by Wells Fargo to provide back-up liquidity for the paper, according to a filing with the Securities and Exchange Commission.
The provider of biochemical and organic chemical products and kits entered into the new credit facility in February 2005 with Wells Fargo and Wachovia Securities to replace an existing facility set to expire (CIN, 3/11/2005). The credit originally consisted of a five-year, $150 million revolver and a three-year, $150 million term loan. Aside from the increase in the revolver, all other terms of the credit remain the same, Richter said. The revised revolving facility will expire in December 2011.