Lexmark Secures Loan from China CITIC Bank

Originally written and published at wirthconsulting.org

Lexmark Completes Security Agreement with China CITIC Bank

Moody’s Investors Service (“Moody’s”) has downgraded Lexmark International, Inc.’s (“Lexmark”) corporate family rating to B3 from Ba3. As part of the rating action, Moody’s downgraded Lexmark’s probability of default rating to B3-PD from Ba3-PD and the senior unsecured debt ratings to B3 from Ba3.

Following on the heels of Moody’s move, Lexmark has announced that, as of April 2, 2018, it’s entered into a security agreement with China CITIC Bank, as collateral agent, for the benefit of the co-secured parties under the security agreement.

wirthconsulting.org reports, subject to the terms of the security agreement, Lexmark granted to the collateral agent a first-priority lien on and security interest in (subject to permitted liens) on Lexmark assets.

Wilmington Trust, National Association, as trustee for the holders of the 2020 Senior Notes, is one of the co-secured parties under the security agreement and is entitled to the benefit of the lien and security interest granted by Lexmark pursuant to the security agreement.

All other lenders who are counter-parties to agreements with Lexmark relating to hedging or cash-management services that are approved by the collateral agent will, upon execution of a joinder agreement agreeing to be bound by the security agreement, be entitled to the benefit, on a pari passu basis, of the lien and security interest granted by Lexmark in the collateral pursuant to the security agreement.