Cabot Microelectronics Corporation Announces Refinancing of Term Loan Facility
December 23 2019 - 6:00PM
Cabot Microelectronics Corporation (Nasdaq: CCMP) today announced
that it has amended its credit agreement entered into on November
15, 2018 to reduce the interest rate on borrowings under the
agreement’s term loan facility by 25 basis points. The new term
loan facility of the amended credit agreement has an aggregate
principal amount of $957.0 million and bears interest at a rate per
annum equal to, at the company’s option, either (a) a London
Inter-bank Offered Rate (“LIBOR”), subject to a 0.00% floor, or (b)
a base rate, in each case plus an applicable margin of 2.00% for
LIBOR loans and 1.00% for base rate loans.
“We are proud to report a successful refinancing
of our credit facility, which will deliver savings of approximately
$2 million in interest payments on an annualized basis. We believe
this result is consistent with the strength of our company and our
ability to deliver against expectations,” said Scott Beamer, Vice
President and Chief Financial Officer of Cabot Microelectronics
Corporation.
The interest rate applicable to the amended
credit agreement’s revolving credit facility, and the restrictive
covenants, maturity dates and events of default remain unchanged
from the provisions of the November 2018 credit agreement.
ABOUT CABOT MICROELECTRONICS
CORPORATIONCabot Microelectronics Corporation,
headquartered in Aurora, Illinois, is a leading global supplier of
consumable materials to semiconductor manufacturers and pipeline
companies. The company’s products play a critical role in the
production of advanced semiconductor devices, helping to enable the
manufacture of smaller, faster and more complex devices by its
customers. Cabot Microelectronics Corporation is also a
leading provider of performance materials to pipeline
operators. The company's mission is to create value by
delivering high-performing and innovative solutions that solve its
customers’ challenges. The company has approximately 1,900
employees globally. For more information about Cabot
Microelectronics Corporation, visit www.cabotcmp.com, or contact
Colleen Mumford, Vice President, Communications and Marketing, at
630-499-2600.
SAFE HARBOR STATEMENTThis press
release contains forward-looking statements, which address a
variety of subjects including, for example, future sales and
operating results; growth or contraction, and trends in the
industry and markets in which the Company participates; the
acquisition of, investment in, or collaboration with other
entities, including the Company’s acquisition of KMG Chemicals,
Inc. (“KMG”), and the expected benefits and synergies of such
acquisition; divestment or disposition, or cessation of investment
in certain, of the Company’s businesses; new product introductions;
development of new products, technologies and markets; product
performance; the financial conditions of the Company's customers;
competitive landscape; the Company's supply chain; natural
disasters; various economic or political factors and international
or national events, including related to the enactment of trade
sanctions, tariffs, or other similar matters; the generation,
protection and acquisition of intellectual property, and litigation
related to such intellectual property or third party intellectual
property; environmental, health and safety laws and regulations,
and related compliance; the operation of facilities by Cabot
Microelectronics; the Company's management; foreign exchange
fluctuation; the Company's current or future tax rate, including
the effects of the Tax Cuts and Jobs Act in the United States (“tax
act”); cybersecurity threats; financing facilities and related
debt, pay off or payment of principal and interest, and compliance
with covenants and other terms; and, uses and investment of the
Company's cash balance, including dividends and share repurchases,
which may be suspended, terminated or modified at any time for any
reason by the Company, based on a variety of factors. Statements
that are not historical facts, including statements about Cabot
Microelectronics’ beliefs, plans and expectations, are
forward-looking statements. Such statements are based on current
expectations of Cabot Microelectronics’ management and are subject
to a number of factors and uncertainties, which could cause actual
results to differ materially from those described in the
forward-looking statements. For information about factors that
could cause actual results to differ materially from those
described in the forward-looking statements, please refer to Cabot
Microelectronics’ filings with the Securities and Exchange
Commission (“SEC”), including the risk factors contained in Cabot
Microelectronics’ Annual Report on Form 10-K for the fiscal year
ended September 30, 2019. Except as required by law, Cabot
Microelectronics undertakes no obligation to update forward-looking
statements made by it to reflect new information, subsequent events
or circumstances.
Colleen Mumford
Vice President, Communications and Marketing
Cabot Microelectronics Corporation
(630) 499-2600
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