INNOSPEC INC. Debt Disclosure
Note 12. Long-Term Debt
As at December 31, 2025 and 2024, the Company has not drawn down on its revolving credit facility. During 2025, 2024 and 2023, the Company did not draw down or repay any borrowing on its revolving credit facility.
On May 31, 2023, Innospec Inc. and certain subsidiaries of the Company (together with the Company, the “Borrowers”) entered into a Multicurrency Revolving Facility Agreement with various lenders (the “Agreement”) which replaces the Company’s credit facility agreement dated September 26, 2019. The Agreement provides for a $250.0 million four-year multicurrency revolving loan facility available to the Borrowers (the “Facility”). The Agreement also contains an accordion feature whereby the Company may elect to increase the total available borrowings by an aggregate amount of up to $125.0 million. The termination date of the Facility is May 30, 2027, but the Agreement includes an option for the Company to request an extension of the Facility for a further year.
Effective as of May 20, 2024, the termination date of the Facility was extended from May 30, 2027 to May 31, 2028 in accordance with the terms of the Company’s multicurrency revolving facility agreement (the “Facility Agreement”). No other terms of the Facility Agreement or the Facility were modified. The Company paid a customary extension fee in connection with the extension of the Facility as contemplated by the Facility Agreement. As a consequence, the Company has capitalized a further $0.3 million of costs relating to the new Agreement which are to be amortized over the period to May 31, 2028.
The deferred finance costs of $0.7 million (December 31, 2024 – $1.1 million) related to the arrangement of the credit facility, are included within other current and non-current assets at the balance sheet dates.
(in millions) |
|
2025 |
|
|
2024 |
|
||
Gross cost at January 1 |
|
$ |
1.7 |
|
|
$ |
1.4 |
|
Capitalized in the year |
|
|
— |
|
|
|
0.3 |
|
|
|
|
1.7 |
|
|
|
1.7 |
|
|
|
|
|
|
|
|
||
Accumulated amortization at January 1 |
|
$ |
(0.6 |
) |
|
$ |
(0.2 |
) |
Amortization in the year |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
$ |
(1.0 |
) |
|
$ |
(0.6 |
) |
|
|
|
|
|
|
|
||
Net book value at December 31 |
|
$ |
0.7 |
|
|
$ |
1.1 |
|
Amortization expense was $0.4 million, $0.4 million and $0.4 million in 2025, 2024 and 2023, respectively. The charge is included in interest expense, see Note 2 of the Notes to the Consolidated Financial Statements.
The obligations of the Company under the credit facility are secured obligations and guaranteed by certain subsidiaries of the Company. Amounts available under the revolving facility may be borrowed in U.S. dollars, Euros, British pounds and other freely convertible currencies.
The Company’s credit facility contains restrictive clauses which may constrain our activities and limit our operational and financial flexibility. The facility obliges the lenders to comply with a request for utilization of finance unless there is an event of default outstanding. Events of default are defined in the credit facility and include a material adverse change to our assets, operations or financial condition. The facility contains a number of restrictions that limit our ability, among other things, and subject to certain limited exceptions, to incur additional indebtedness, pledge our assets as security, guarantee obligations of third parties, make investments, undergo a merger or consolidation, dispose of assets, or materially change our line of business.
In addition, the credit facility contains terms which, if breached, would result in it becoming repayable on demand. It requires, among other matters, compliance with the following financial covenant ratios measured on a quarterly basis: (1) the ratio of net debt to EBITDA shall not be greater than 3.5:1 and (2) the ratio of EBITDA to net interest shall not be less than 4.0:1. Management has determined that the Company has not breached these covenants throughout the period to December 31, 2025 and does not expect to breach these covenants for the next 12 months.
The weighted average rate of interest on borrowings was 0.00% at December 31, 2025 and 0.00% at December 31, 2024. Payments of interest on long-term debt were $0.0 million, $0.0 million and $0.0 million in 2025, 2024 and 2023, respectively.
The net cash outflows in respect of refinancing costs were $0.0 million, $0.3 million and $1.4 million in 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 15, 2017 | |
| 2015 | Feb 17, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.