West Pharmaceutical Services Refinances Credit Facilities with New $950M Agreement

Executive Summary

On October 26, 2026, West Pharmaceutical Services, Inc. (NYSE: WST) entered into a new unsecured credit agreement with Bank of America, N.A. as administrative agent, replacing its prior 2019 credit agreement.

Key Terms of the New Credit Agreement

• Total Capacity: $950 million aggregate initial commitments.
  • Revolving Credit Facility: $750 million (with extension options and sublimits of $50M for letters of credit and $90M for swing line loans).
  • Term Loan Facility: $200 million funded on the Effective Date, featuring quarterly amortization installments from March 31, 2028 ($1.25 million to $2.5 million per quarter) with the remaining balance due at maturity in five years.
• Pricing & Fees:
  • Applicable margin is determined by the company's Net Leverage Ratio (Net Consolidated Debt to Modified EBITDA).
  • Revolver SOFR spread: 1.000% to 1.500% (Base Rate spread: 0.000% to 0.500%).
  • Term Loan SOFR spread: 1.125% to 1.750% (Base Rate spread: 0.125% to 0.750%).
  • Commitment fee on unused revolver capacity: 0.125% to 0.225%.
• Financial Covenants:
  • Maximum Net Leverage Ratio of 3.50 to 1.0 (stepping up to 4.00 to 1.0 during designated material acquisition periods).

Termination of Existing Facility

• West used proceeds from the new facility to repay the remaining $130.0 million outstanding balance under its March 28, 2019 credit agreement, which was terminated without early termination penalties.

Market & Capital Structure Impact

This is a standard liquidity enhancement and maturity extension event, providing the company with expanded borrowing headroom ($950M vs. prior drawn amount of $130M) to fund potential strategic acquisitions, capital expenditures, and share repurchases.