Carpenter Completes $500M Syndicated Credit Facility
June 28 2013 - 11:03AM
Business Wire
Carpenter Technology Corporation (NYSE: CRS) announced today the
successful completion of a $500 million syndicated credit facility.
This five-year revolving line of credit replaces the $350 million
revolver due to expire in June, 2016. The new facility, comprised
of ten lenders, was substantially oversubscribed prior to
allocations.
“Favorable markets and rates gave us the opportunity to
significantly increase our financial flexibility with improved
pricing and lower borrowing costs,” said Tony Thene, Senior Vice
President and Chief Financial Officer. “The completion of this $500
million credit facility contributes to having a financial structure
in place that supports the Company’s overall growth strategy.”
Bank of America Merrill Lynch and J.P.Morgan Securities served
as the Joint Lead Arrangers. Terms of the facility remain largely
unchanged from the prior agreement and include the same two
financial covenants, debt to capital ratio and interest coverage
ratio. Pricing was materially improved as the prior 20 basis point
Facility Fee was replaced with a 15 basis point Commitment Fee,
which contributes to a reduction in the all-in drawn fee by 15
basis points at the current rating level.
About Carpenter Technology
Corporation
Carpenter Technology Corporation, based in Wyomissing, Pa.,
produces and distributes specialty alloys, including stainless
steels, titanium alloys and superalloys, and various engineered
products. Information about Carpenter can be found at
www.cartech.com.
Forward-Looking Statements
This press release contains 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, 2012, the 10Q for the quarters ending
September 30, 2012, December 31, 2012 and March 31, 2013 and the
exhibits attached to those filings. They include but are not
limited to: (1) expectations with respect to the synergies, costs
and other anticipated financial impacts of the Latrobe acquisition
transaction could differ from actual synergies realized, costs
incurred and financial impacts experienced as a result of the
transaction; (2) the cyclical nature of the specialty materials
business and certain end-use markets, including aerospace, defense,
industrial, transportation, 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; (3) the ability of Carpenter to achieve cost
savings, productivity improvements or process changes; (4) the
ability to recoup increases in the cost of energy, raw materials,
freight or other factors; (5) domestic and foreign excess
manufacturing capacity for certain metals; (6) fluctuations in
currency exchange rates; (7) the degree of success of government
trade actions; (8) the valuation of the assets and liabilities in
Carpenter’s pension trusts and the accounting for pension plans;
(9) possible labor disputes or work stoppages; (10) the potential
that our customers may substitute alternate materials or adopt
different manufacturing practices that replace or limit the
suitability of our products; (11) the ability to successfully
acquire and integrate acquisitions, including the Latrobe
acquisition; (12) the availability of credit facilities to
Carpenter, its customers or other members of the supply chain; (13)
the ability to obtain energy or raw materials, especially from
suppliers located in countries that may be subject to unstable
political or economic conditions; (14) Carpenter’s manufacturing
processes are dependent upon highly specialized equipment located
primarily in facilities in Reading and Latrobe, Pennsylvania for
which there may be limited alternatives if there are significant
equipment failures or catastrophic event; and (15) Carpenter’s
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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