---
schema_version: "secwatch.filing_event.v1"
accession: "0001590714-23-000051"
form_type: "8-K"
ticker: "ESI"
cik: "0001590714"
company_name: "Element Solutions Inc"
filed_at: "2023-06-05T23:59:59+00:00"
generated_at: "2026-06-14T07:22:03.482752+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.5
calibrated_materiality_score: 0.5
confidence: "high"
source: SEC EDGAR
---

# Element Solutions borrows $150M to terminate distribution agreement; enters cross-currency swaps

## Summary
- Borrowed $150M Tranche A Term Loans at SOFR+1.75%, maturing Jan 31, 2026.
- Proceeds used to finance termination of a long-standing distribution agreement closed June 1, 2023.
- Entered swap transactions converting $150M USD debt to €140.2M fixed-rate EUR debt at 4.59% all-in rate.
- New maintenance covenant requires first lien net leverage ratio ≤5.00x; terms otherwise identical to existing $750M tranche B term loans.
- Hedge counterparties include lenders; swaps mature January 31, 2026.

## SEC filing metadata
- accession: 0001590714-23-000051
- form_type: 8-K
- ticker: ESI
- cik: 0001590714
- company_name: Element Solutions Inc
- filed_at: 2023-06-05T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.5
- calibrated_materiality_score: 0.5
- confidence: high
- sec_items: 1.01, 2.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1590714/000159071423000051/0001590714-23-000051-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1590714/000159071423000051/esi-20230601.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001590714-23-000051
- JSON: https://secwatch.observer/filing/0001590714-23-000051.json
- Plain text: https://secwatch.observer/filing/0001590714-23-000051.txt

## Key facts
- Debt Financings
  Element Solutions Inc incurred term loan of $150 million with Citibank, N.A. at Term SOFR (as defined in the Credit Agreement), plus a spread of 1.75% per annum maturing January 31, 2026.
  - Instrument: term loan
  - Principal: $150 million
  - Counterparty: Citibank, N.A.
  - Rate: Term SOFR (as defined in the Credit Agreement), plus a spread of 1.75% per annum
  - Maturity: January 31, 2026
  - Event: incurrence
  source text: Pursuant to Amendment No. 7, the Borrowers borrowed new U.S. dollar-denominated term loans (the "Tranche A Term Loans") under an incremental term loan facility (the "Term Loan A Facility") in an aggregate principal amount of $150 million under the Credit Agreement.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1590714/000159071423000051/0001590714-23-000051-index.htm
- Debt Financings
  Element Solutions Inc entered an off-balance-sheet arrangement for debt of an aggregate initial notional amount of approximately €140.2 million with certain banks at fixed EUR all-in rate of 4.59% maturing January 31, 2026.
  - Principal: an aggregate initial notional amount of approximately €140.2 million
  - Counterparty: certain banks
  - Rate: fixed EUR all-in rate of 4.59%
  - Maturity: January 31, 2026
  - Event: off balance sheet
  source text: Swap Transactions On June 1, 2023, the Company entered into swap transactions (the "Swaps") with certain banks, including lenders of the Tranche A Term Loans (the "Hedge Counterparties").
  evidence_url: https://www.sec.gov/Archives/edgar/data/1590714/000159071423000051/0001590714-23-000051-index.htm
- Material Agreements
  Element Solutions Inc amended Amendment No. 7 and Joinder to Credit Agreement with Citibank, N.A., as collateral agent and administrative agent, and the lenders party thereto valued at $150 million (effective 2023-06-01).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: Citibank, N.A., as collateral agent and administrative agent, and the lenders party thereto
  - Value: $150 million
  - Effective: 2023-06-01
  source text: On June 1, 2023, Element Solutions Inc (the "Company"), MacDermid, Incorporated ("MacDermid," and together with the Company, the "Borrowers"), certain subsidiaries of the Company party thereto, Citibank, N.A., as collateral agent and administrative agent (the "Agent"), and the lenders party thereto, entered into an Amendment No. 7 and Joinder to Credit Agreement ("Amendment No. 7")
  evidence_url: https://www.sec.gov/Archives/edgar/data/1590714/000159071423000051/0001590714-23-000051-index.htm
- Material Agreements
  Element Solutions Inc entered into Swaps with certain banks, including lenders of the Tranche A Term Loans valued at aggregate initial notional amount of approximately €140.2 million (effective 2023-06-01).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: certain banks, including lenders of the Tranche A Term Loans
  - Value: aggregate initial notional amount of approximately €140.2 million
  - Effective: 2023-06-01
  source text: On June 1, 2023, the Company entered into swap transactions (the "Swaps") with certain banks, including lenders of the Tranche A Term Loans (the "Hedge Counterparties")
  evidence_url: https://www.sec.gov/Archives/edgar/data/1590714/000159071423000051/0001590714-23-000051-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.