GrafTech Completes Credit Facility Amendment Increasing Liquidity
March 02 2015 - 8:30AM
Business Wire
Arranges a New $40 Million Term Loan
Facility
GrafTech International Ltd. (NYSE:GTI) today announced that it
has amended its revolving credit facility to provide additional
flexibility, resulting in access to the full $400 million revolver.
In addition, the Company established a new $40 million senior
secured term loan facility.
The primary purpose of the credit facility amendment and the
term loan facility is to further enhance GrafTech’s capital
structure and to provide more than ample liquidity to repay its
$200 million senior subordinated notes due in November 2015 while
comfortably funding its ongoing operations and initiatives. The
term loan is a delayed draw facility, which is to be used in
connection with the repayment of the Company’s senior subordinated
notes. The term loan facility was provided by a group of financial
institutions led by J.P. Morgan and Bank of America.
Joel Hawthorne, Chief Executive Officer of GrafTech, commented,
“By proactively arranging this financing we have expanded our
liquidity to address current debt maturities and enhanced our
capital structure moving forward. This, together with our
previously announced cost savings initiatives and operational
improvements, positions us well as we execute on our strategic
plans.”
The interest rate on the facilities is a spread over the London
Interbank Offered Rate (“LIBOR”) and will vary based on leverage.
The initial interest rate at closing is LIBOR plus 225 basis
points.
GrafTech International is a global company that has been
redefining limits for more than 125 years. We offer innovative
graphite material solutions for our customers in a wide range of
industries and end markets, including steel manufacturing, advanced
energy applications and latest generation electronics. GrafTech
operates 18 principal manufacturing facilities on four continents
and sells products in over 70 countries. Headquartered in
Independence, Ohio, GrafTech employs approximately 2,400 people.
For more information, call 216-676-2000 or visit
www.GrafTech.com.
NOTE ON FORWARD-LOOKING STATEMENTS: This news release and
related discussions may contain forward-looking statements about
such matters as: our outlook for 2015; future or targeted
operational and financial performance; growth prospects and rates;
the markets we serve; future or targeted profitability, cash flow,
liquidity, sales, costs and expenses, tax rates, working capital,
inventory levels, debt levels, capital expenditures, EBITDA, cost
savings and business opportunities and positioning; strategic
plans; stock repurchase plans; cost, inventory and supply chain
management; rationalization and related activities; the impact of
rationalization, product line changes, cost competitiveness and
liquidity initiatives; expected or targeted changes in production
capacity or levels, operating rates or efficiency in our operations
or our competitors' or customers' operations; future prices and
demand for our products; product quality; diversification, new
products, and product improvements and their impact on our
business; the integration or impact of acquired businesses;
investments and acquisitions that we may make in the future;
possible financing or refinancing (including factoring and supply
chain financing) activities; our customers' operations, order
patterns and demand for their products; the impact of customer
bankruptcies; our position in markets we serve; regional and global
economic and industry market conditions, including our expectations
concerning their impact on us and our customers and suppliers;
conditions and changes in the global financial and credit markets;
legal proceedings and antitrust investigations; our liquidity and
capital resources, including our obligations under our senior
subordinated notes that mature in November 2015; tax rates and the
effects of jurisdictional mix; the impact of accounting changes;
and currency exchange and interest rates and changes therein.
We have no duty to update these statements. Our expectations and
targets are not predictions of actual performance and historically
our performance has deviated, often significantly, from our
expectations and targets. Actual future events, circumstances,
performance and trends could differ materially, positively or
negatively, due to various factors, including: adjustments to our
2014 results; actual timing of the filing of our Form 10-K with the
SEC and potential effects of delays in such filing; failure to
achieve cost savings, EBITDA or other estimates; actual outcome of
uncertainties associated with assumptions and estimates used when
applying critical accounting policies and preparing financial
statements; failure to successfully develop and commercialize new
or improved products; adverse changes in cost, inventory or supply
chain management; limitations or delays on capital expenditures;
business interruptions including those caused by weather, natural
disaster, or other causes; delays or changes in, or
non-consummation of proposed investments or acquisitions; failure
to successfully integrate or achieve expected synergies,
performance or returns expected from any completed investments or
acquisitions; inability to protect our intellectual property rights
or infringement of intellectual property rights of others; changes
in market prices of our securities; changes in our ability to
obtain new or refinance existing financing on acceptable terms;
adverse changes in labor relations; adverse developments in legal
proceedings or investigations; non-realization of anticipated
benefits from, or variances in the cost or timing of,
organizational changes, rationalizations and restructurings; loss
of market share or sales due to rationalization, product line
changes, or pricing activities; negative developments relating to
health, safety or environmental compliance, remediation or
liabilities; downturns, production reductions or suspensions, or
other changes in steel, electronics and other markets we or our
customers serve; customer or supplier bankruptcy or insolvency
events; political unrest which adversely impacts us or our
customers' businesses; declines in demand; intensified competition
and price or margin decreases; graphite electrode and needle coke
manufacturing capacity increases; fluctuating market prices for our
products, including adverse differences between actual graphite
electrode prices and spot or announced prices; consolidation of
steel producers; mismatches between manufacturing capacity and
demand; significant changes in our provision for income taxes and
effective income tax rate; changes in the availability or cost of
key inputs, including petroleum-based coke or energy; changes in
interest or currency exchange rates; inflation or deflation;
failure to satisfy conditions to government grants; continuing
uncertainty over fiscal or monetary policies or conditions in the
U.S., Europe, China or elsewhere; changes in fiscal and monetary
policy; a protracted regional or global financial or economic
crisis; and other risks and uncertainties, including those detailed
in our SEC filings, as well as future decisions by us. This news
release does not constitute an offer or solicitation as to any
securities. References to street or analyst earnings estimates mean
those published by First Call.
GTI-G
GrafTech International Ltd.Kelly Taylor, 216-676-2000Director,
Investor Relations