Albemarle Signs $1.5 Billion Credit Facility Maturing in 2031
Key Facts
Albemarle entered into an unsecured revolving credit facility of up to $1.5 billion on October 29, maturing on October 29, 2031, according to a company filing with the U.S. Securities and Exchange Commission. The new facility replaces a previous credit agreement entered into on October 28, 2022, which was scheduled to mature on October 28, 2028. This establishes a new credit framework extending three years beyond the previous facility’s maturity date. The company announced its quarterly cash dividend in a separate filing dated October 26, three days before entering into the credit agreement. The news comes as the company prepares to report third-quarter results on November 4.
The agreement requires Albemarle to maintain a consolidated leverage ratio of 3.50 to 1.00 or less at the end of each fiscal quarter. It allows the limit to increase by 0.50 to 1.00 for four consecutive fiscal quarters following certain acquisitions financed with more than $500 million of debt. The filing ties this exception to qualifying acquisitions, while the base leverage limit remains in effect in other cases. Interest on borrowings is calculated at a floating rate based on the applicable benchmark rate for the currency in which the borrowing is denominated. A margin determined by reference to the company’s credit ratings is added to the benchmark rate, according to the filing.
Albemarle announced a quarterly cash dividend of $0.41 per share on October 26, with a stated annual rate of $1.64 per share. The dividend is payable on January 4, 2027, to shareholders of record on December 18, 2026. The announcement is separate in timing from the credit agreement the company entered into on October 29. In the dividend announcement, the company specified the payment amount, record date and payment date. The announcement does not link the dividend to the credit facility.
In its latest available quarterly results, the company reported net sales of $1,743.3 million in the second quarter of 2026, compared with $1,330.0 million in the same period of 2025. Adjusted EBITDA rose to $858.1 million from $336.5 million a year earlier. Albemarle attributed sales growth mainly to higher prices in the Energy Storage and Specialties segments, along with higher sales volumes in Specialties. It also linked the increase in adjusted EBITDA to sales growth and ongoing cost and productivity improvements. These figures provide an operating backdrop for the company ahead of its next earnings release.
Energy Storage was the largest contributor to the improvement in the company’s second-quarter figures: sales rose 77.9% year over year to $1.2767 billion. Adjusted EBITDA increased 229.3% to $723.5 million. The company attributed the increase mainly to higher lithium prices. These results place the segment’s performance in the context of the group’s reported sales and earnings growth in the same quarter. Albemarle also presents fiscal 2026 scenarios based on different average lithium price levels.
The company’s fiscal 2026 scenarios range from total sales of $4.1 billion to $7.8 billion and adjusted EBITDA of $0.9 billion to $4.4 billion. The ranges are based on assumed average lithium prices of about $10, $20 and $30 per kilogram of lithium carbonate equivalent. According to the company’s presentation, these levels correspond to the 2025 average, the first-quarter 2026 average and the average between 2021 and 2025. Albemarle presents the results as scenarios conditional on price assumptions, rather than as a single range separate from them. Markets are awaiting third-quarter results after the New York Stock Exchange closes on November 4, 2026.
Albemarle scheduled its third-quarter results announcement for after the New York Stock Exchange closes on November 4, 2026. The company is due to hold a call to discuss the results on November 5 at 8 a.m. Eastern Time. The call follows second-quarter results showing higher sales and adjusted EBITDA, and comes as the company has presented multiple financial scenarios for the year based on lithium prices. In September, Albemarle announced the appointment of Ragnar Udd as chief executive officer and president, effective February 1, 2027. Current CEO Kent Masters will become executive chairman of the board when the change takes effect.