Carpenter Technology Announces Completion of $200 Million Syndicated Credit Facility
November 24 2009 - 4:05PM
Business Wire
Carpenter Technology Corporation (NYSE: CRS), announced today
the successful completion of a $200 million syndicated credit
facility. This three year revolving line of credit replaces the
five year $150 million revolver due to expire in August, 2010 and
the $50 million accounts receivable securitization facility due to
expire in March, 2010. The new facility, comprised of nine lenders,
was substantially oversubscribed prior to allocations.
“We are very pleased with the lender group’s show of confidence
in our business and financial position,” said K. Douglas Ralph,
Senior Vice President and Chief Financial Officer. “The completion
of this $200 million facility further solidifies our strong
liquidity position which includes over $375 million of cash on our
balance sheet.”
Bank of America and JPMorgan Chase served as the Co-Lead
Arrangers. Terms of the facility remain largely unchanged from the
prior agreement and include the same two financial covenants, debt
to total capital and interest coverage ratio.
Carpenter Technology produces and distributes specialty alloys,
including stainless steels, titanium alloys and superalloys, and
various engineered products. Detailed information about Carpenter
Technology can be accessed at our website: www.cartech.com.
Except for historical information, all other information in this
news release consists of forward-looking statements within the
meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ from those projected,
anticipated or implied. The most significant of these uncertainties
are described in Carpenter's filings with the Securities and
Exchange Commission including its annual report on Form 10-K for
the year ended June 30, 2009, its quarterly report on Form 10-Q for
the period ended September 30, 2009 and the exhibits attached to
those filings. They include but are not limited to: (1) the
cyclical nature of the specialty materials business and certain
end-use markets, including aerospace, industrial, automotive,
consumer, medical, and energy, or other influences on Carpenter’s
business such as new competitors, the consolidation of competitors,
customers, and suppliers or the transfer of manufacturing capacity
from the United States to foreign countries; (2) the ability
of Carpenter to achieve cost savings, productivity improvements or
process changes; (3) the ability to recoup increases in the
cost of energy, raw materials, freight or other factors;
(4) domestic and foreign excess manufacturing capacity for
certain metals; (5) fluctuations in currency exchange rates;
(6) the degree of success of government trade actions;
(7) the valuation of the assets and liabilities in Carpenter’s
pension trusts and the accounting for pension plans;
(8) possible labor disputes or work stoppages; (9) the
potential that our customers may substitute alternate materials or
adopt different manufacturing practices that replace or limit the
suitability of our products; (10) the ability to successfully
acquire and integrate acquisitions; (11) the availability of
credit facilities to Carpenter, its customers or other members of
the supply chain; (12) the ability to obtain energy or raw
materials, especially from suppliers located in countries that may
be subject to unstable political or economic conditions;
(13) our manufacturing processes are dependent upon highly
specialized equipment located primarily in one facility in Reading,
Pennsylvania and for which there may be limited alternatives if
there are significant equipment failures or catastrophic events;
and (14) our future success depends on the continued service
and availability of key personnel, including members of our
executive management team, management, metallurgists and other
skilled personnel and the loss of these key personnel could affect
our ability to perform until suitable replacements are found. Any
of these factors could have an adverse and/or fluctuating effect on
Carpenter's results of operations. The forward-looking statements
in this document are intended to be subject to the safe harbor
protection provided by Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Carpenter undertakes no obligation to update or revise
any forward-looking statements.
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