Orion Engineered Carbons S.A. (NYSE: OEC), a worldwide supplier of
specialty and high-performance Carbon Black, today announced the
successful completion of the syndication process, including the final
pricing of the interest rate spreads, for the Ä665 million term loan
under its new credit agreement, which it entered into prior to the
closing of its IPO last month. The term loan will bear interest at an
annual rate of LIBOR/EURIBOR (minimum 1.00%) plus 4.00%, subject to
downward adjustment based on Orionís leverage ratio as set forth in the
credit agreement. As part of the refinancing implemented prior to the
closing of the IPO, Orion drew down the term loan and used the proceeds
to repay its existing indebtedness and related expenses. The credit
agreement also provides for a Ä115 million revolving credit facility,
bearing interest at an annual rate of LIBOR/EURIBOR (minimum 1.00%) plus
3.00%, subject to downward adjustment. With the completion of the
syndication process the terms of the credit agreement are fixed.
The recent refinancing together with the recapitalization associated
with the IPO provides Orion with greater flexibility in its operations
as a public company and substantially reduces its overall interest
expense. As a result, Orionís estimated pro forma annualized interest
expense (at an overall effective annual rate of 5.00%) has been reduced
by approximately Ä50 million for the 12 months following the IPO (based
on current LIBOR/EURIBOR rates), as compared with the 12 months prior to
the IPO. This very significant reduction in interest cost will provide
Orion with further liquidity that may be used for investment in its
business as well as other corporate purposes.
About Orion Engineered Carbons S.A.
Orion Engineered Carbons is a worldwide supplier of Carbon Black. The
Company offers standard and high-performance products for Coatings,
Printing Inks, Polymers, Rubber and other applications. Our high-quality
Gas Blacks, Furnace Blacks and Specialty Carbon Blacks tint, colorize
and enhance the performance of plastics, paints and coatings, inks and
toners, adhesives and sealants, tires, and manufactured rubber goods
such as automotive belts and hoses. With 1,360 employees worldwide,
Orion Engineered Carbons runs 14 global production sites and four
Applied Technology Centers. For more information visit our website www.orioncarbons.com.
Orion Engineered Carbons S.A.
+1 832 445-3880
Source: Orion Engineered Carbons S.A.