aibioWest Pharmaceutical enters $750 million revolver and $200 million term loan
Tickers WST
Bank of America, N.A. is administrative agent under the new unsecured credit agreement. The company repaid $130.0 million under its 2019 credit agreement.
Key facts
- Company
- WEST PHARMACEUTICAL SERVICES INC (NYSE: WST)
- News type
- Debt Financing
- Primary source
- SEC Form 8-K
The new facility
West Pharmaceutical Services, Inc. entered into a new Credit Agreement on October 26, 2026, according to a Form 8-K. Bank of America, N.A. is administrative agent, swing line lender and an issuing lender. The filing refers to other lenders that may join from time to time but does not name them. It names no placement agent or underwriter, and no counsel.
The facility has two parts. A revolving credit facility allows advances of up to $750 million at any one time outstanding. A term loan of $200 million was advanced on the effective date. The agreement runs five years, and the company may request extensions of the revolver's maturity. Letters of credit may reach $50 million and swing line loans $90 million, both within the revolving commitments. Revolving advances may be drawn in U.S. dollars, euros, yen and Singapore dollars.
Pricing depends on the company's Net Leverage Ratio. Revolving advances that are term SOFR loans carry a margin of 1.000% to 1.500%. Term loans that are term SOFR loans carry 1.125% to 1.750%. The commitment fee on unused revolving commitments ranges from 0.125% to 0.225%. The borrowings are unsecured. The term loan amortizes from March 31, 2028, at $1.25 million to $2.5 million per quarter, with the balance due at maturity.
What was repaid, and the limits attached
The new agreement replaces a Credit Agreement dated March 28, 2019, under which Bank of America, N.A. was also administrative agent. The filing says $130.0 million was outstanding under the old agreement on the effective date and was repaid in full. The company says it paid no early termination penalties.
The main covenant is the leverage test. The company must keep its Net Leverage Ratio, Net Consolidated Debt against Modified EBITDA for the preceding four quarters, at or below 3.50 to 1.0. During material acquisition periods the ceiling rises to 4.00 to 1.0, subject to limits. The filing does not disclose the ratio at the effective date, so the room under the covenant cannot be measured from this document.
The agreement also has a change of control event of default and restricts liens, new lines of business, fundamental changes, dispositions, affiliate transactions and acquisitions. After a default, the lenders may declare the full amount outstanding due. Subsidiaries that guarantee other material debt must, subject to exceptions, guarantee this facility. The filing says no subsidiary guarantors were in place on the effective date.
Some agents and lenders under both the 2019 agreement and the new one, and their affiliates, provide financial advisory, investment banking and commercial banking services to the company. They have received customary fees for those services and may receive more.
The stated uses
The company says it intends to use the borrowings for working capital, capital expenditures and general corporate purposes. The proceeds may also fund permitted acquisitions, repurchases of its capital stock and the repayment or retirement of other indebtedness.
The company's financial position
The annual report shows net income of $493.7 million for 2025, compared with $492.7 million for 2024. Cash provided by operations was $754.8 million in 2025, up from $653.4 million in 2024. Research and development expense was $74.3 million in 2025 and $69.1 million in 2024. Year-end 2024 cash and cash equivalents were $484.6 million.
The earnings show a profitable company. They do not show how much debt it carries after these loans, because the 8-K does not state total debt outstanding. The 8-K also does not describe the products and markets behind the results.
What comes next
The term loan begins amortizing on March 31, 2028. Exhibit 10.1 omits schedules and similar attachments under Regulation S-K Item 601(a)(5). The company says it will furnish any omitted schedule to the Securities and Exchange Commission on request.