secwatch.observer — SEC 8-K summary
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Issuer:     STEPAN CO (SCL)
CIK:        0000094049
Form:       8-K
Filed at:   2023-09-29T23:59:59+00:00
Accession:  0000950170-23-050836
Event type: debt
Sentiment:  neutral
Materiality: 0.55
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Stepan amends debt covenants, adds net leverage ratio step-down to 3.50x by Q1 2025
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- Amended five note purchase agreements and credit agreement; new max net leverage ratio: 4.00x through June 2024, stepping down to 3.50x by March 2025.
- Expanded 'Qualified Cash' definition to include 65% of unencumbered foreign cash, easing net debt calculation.
- Added 0.75% p.a. rating fee if below investment grade, and 0.75% p.a. leverage fee if ratio exceeds 3.50x.
- Minimum Consolidated Net Worth set at $750M; up to two Acquisition Holiday Elections allowed to temporarily raise max leverage to 4.00x.
- Amendments effective September 29, 2023; provide additional covenant flexibility for future operations or M&A.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/94049/000095017023050836/0000950170-23-050836-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/94049/000095017023050836/scl-20230929.htm
  HTML page:      https://secwatch.observer/filing/0000950170-23-050836

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