EMN · 10-Q · 2026Q3 · Full report
Liquidity and Debt Position
EASTMAN CHEMICAL CO · 2026-10-30 · Importance 55 · Surprise 32 · Contradicted
At September 30, 2026, Eastman had $5.218 billion of borrowings and $768 million of cash, resulting in net debt of $4.450 billion, up from $4.221 billion at December 31, 2025. The company issued $600 million of 4.5% notes due February 2031 in first-quarter 2026, receiving $594 million net of discounts and issuance costs. It repaid the remaining $150 million balance of its 2027 Term Loan using available cash and had no revolving-credit-facility or commercial-paper borrowings at September 30. The $1.50 billion revolving facility matures in February 2031, was fully available, and Eastman was in compliance with its covenants.
Key facts
- Eastman repaid the remaining $150 million balance of its 2027 Term Loan in first quarter 2026 using available cash, with no extinguishment costs; the balance was $150 million at December 31, 2025, at a variable interest rate of 5.14%. source
- In February 2026, Eastman amended its credit facility to extend its maturity to February 2031 and temporarily adjust the maximum leverage ratio covenant through the fiscal quarter ending June 30, 2027, in the event of further macroeconomic uncertainty impacting operating results. source
- Eastman issued $600 million aggregate principal amount of 4.5% notes due February 2031 in first quarter 2026; net proceeds after original issue discounts and issuance costs were $594 million. source
- Eastman reported $813 million of goodwill for the performance films reporting unit, part of the AM operating segment, at September 30, 2026; declines in market conditions or forecast revenue and earnings, or changes in valuation assumptions, could result in future goodwill impairment. source
- Eastman has access to a $1.50 billion revolving credit agreement maturing in February 2031. source
- In February 2026, Eastman amended its Credit Facility to extend maturity to February 2031 and temporarily adjust the maximum leverage ratio covenant through the fiscal quarter ending June 30, 2027 if further macroeconomic uncertainty affects operating results. source
- Eastman issued 4.5% notes due February 2031 in a registered public offering during the first quarter of 2026. source
- Eastman had total borrowings of $5.218 billion and long-term borrowings of $4.454 billion at September 30, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -3.9% | Eastman issued $600 million aggregate principal amount of 4.5% notes due February 2031 in first quarter 2026; net proceeds after original… |
| cash | positive | realized | +3.8% | Eastman issued $600 million aggregate principal amount of 4.5% notes due February 2031 in first quarter 2026; net proceeds after original… |
| cash | positive | realized | +3.5% | Eastman provided $124 million of cash from financing activities in first nine months 2026, compared with $415 million of cash used in… |
| operating_income | negative | contingent | -2.6% | Eastman reported $813 million of goodwill for the performance films reporting unit, part of the AM operating segment, at September 30,… |
| net_income | negative | contingent | -2.6% | Eastman reported $813 million of goodwill for the performance films reporting unit, part of the AM operating segment, at September 30,… |
| liability | positive | realized | +1.0% | Eastman repaid the remaining $150 million balance of its 2027 Term Loan in first quarter 2026 using available cash, with no extinguishment… |
| cash | negative | realized | -1.0% | Eastman repaid the remaining $150 million balance of its 2027 Term Loan in first quarter 2026 using available cash, with no extinguishment… |
| assets | negative | contingent | -0.4% | Eastman reported $813 million of goodwill for the performance films reporting unit, part of the AM operating segment, at September 30,… |