Cabot Corporation Provides Update on Liquidity
June 08 2020 - 05:00PM
Business Wire
Cabot Corporation (NYSE: CBT) today announced it has amended its
revolving credit facilities to increase the maximum leverage ratio
permitted under those agreements. The maximum leverage ratio
applicable on the last day of each fiscal quarter will increase to
4.5 times beginning with the quarter ending September 30, 2020 and
through the quarter ending June 30, 2021. There were no changes in
material terms under the agreements. The company's maximum leverage
ratio was previously 3.5 times for the term of these credit
facilities. The agreements are scheduled to mature in October
2022.
Cabot President and CEO Sean Keohane said, “While our liquidity
position remains strong, increasing the maximum leverage ratio
permitted under these credit facilities represents a prudent step
to provide incremental headroom in light of the uncertainty in
demand due to the COVID-19 pandemic. This step will provide
additional flexibility beyond the COVID-19 related stress test
scenarios we have assessed.”
“Our financial position remains sound as we work through this
uncertain environment. We are confident in our expected strong cash
flow generation in the second half of the fiscal year and believe
our solid balance sheet will allow us to successfully navigate this
period and emerge from the downturn as an even stronger industry
leader,” said Keohane.
About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and
performance materials company, headquartered in Boston,
Massachusetts. The company is a leading provider of rubber and
specialty carbons, activated carbon, inkjet colorants,
masterbatches and conductive compounds, fumed silica, and aerogel.
For more information on Cabot, please visit the company’s website
at: https://www.cabotcorp.com. The Company encourages investors and
potential investors to consult the Cabot website regularly.
Forward-Looking Statements – This press release contains
forward-looking statements. All statements that address
expectations or projections about the future, including with
respect to our expectations for our performance in fiscal year
2020, including our expectations for cash flow generation in the
second half of the fiscal year and our ability to navigate the
current downturn, are forward-looking statements. These statements
are not guarantees of future performance and are subject to risks,
uncertainties, potentially inaccurate assumptions, and other
factors, some of which are beyond our control and difficult to
predict. If known or unknown risks materialize, or should
underlying assumptions prove inaccurate, our actual results could
differ materially from past results and from those expressed or
implied by forward-looking statements. Importantly, as we cannot
predict the duration or scope of the COVID-19 pandemic, the
negative impact to our results cannot be estimated. Factors that
will influence the impact on our business and operations include
the duration and extent of the pandemic, the extent of imposed or
recommended containment and mitigation measures, and the general
economic consequences of the pandemic. Other important factors that
could cause our results to differ materially from those expressed
or implied in the forward-looking statements include, but are not
limited to, competition from other specialty chemical companies;
volatility in the price of energy and raw materials; a significant
adverse change in a customer relationship; safety, health and
environmental requirements; unanticipated delays in site
development projects; negative or uncertain worldwide or regional
economic conditions and market opportunities, including from trade
relations or global health matters; and fluctuations in foreign
currency exchange and interest rates. These factors are discussed
more fully in the reports we file with the Securities and Exchange
Commission (“SEC”), particularly under the heading “Risk Factors”
in our annual report on Form 10-K for our fiscal year ended
September 30, 2019 and in our quarterly report on Form 10-Q for the
fiscal quarter ended March 31, 2020, and subsequent SEC filings,
filed with the SEC at www.sec.gov. We assume no obligation to
provide revisions to any forward-looking statements should
circumstances change, except as otherwise required by securities
and other applicable laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20200608005669/en/
Investor Contact: Steve Delahunt (617) 342-6255
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