CECO Environmental Upsizes Credit Facility to $400 Million
Rhea-AI Summary
CECO Environmental Corp. (Nasdaq: CECO) has upsized its credit facility to $400 million, a significant increase from the existing $246 million aggregate capacity. This expanded senior secured revolving credit facility comes with a five-year term and an option to increase by an additional $125 million. The move is aimed at strengthening CECO's financial resources to pursue both organic and inorganic growth opportunities in global markets.
Peter Johansson, CECO's Chief Financial and Strategy Officer, highlighted that this expansion provides greater financial agility and reinforces the company's commitment to executing growth plans effectively. The credit facility involves several financial institutions, with Bank of America, N.A. serving as the Administrative Agent, and BofA Securities, Inc. and TD Securities as Joint Lead Arrangers.
Positive
- Increased credit facility from $246 million to $400 million
- Option to further increase the facility by $125 million
- Five-year term providing long-term financial flexibility
- Enhanced ability to fund potential growth opportunities
- Support from multiple major financial institutions
Negative
- None.
News Market Reaction
On the day this news was published, CECO declined 2.92%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
DALLAS, Oct. 15, 2024 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (Nasdaq: CECO), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, has announced a significant upsize in the form of an amendment and restatement of its credit facility, increasing it to a
The expanded credit facility comes with a five-year term and an option to increase the facility by
Peter Johansson, CECO’s Chief Financial and Strategy Officer, emphasized the strategic importance of this expanded credit facility, noting, "This move not only provides us with greater financial agility but also reinforces our commitment to executing our growth plans effectively. With the backing of our committed financial partners, we are well-equipped to adapt to the evolving industry landscape and seize emerging opportunities."
Bank of America, N.A. is the Administrative Agent; BofA Securities, Inc. and TD Securities are the Joint Lead Arrangers, and The Toronto-Dominion Bank, New York Branch, Citibank, N.A., Fifth Third Bank, N.A. and JPMorgan Chase Bank, N.A. are Co-Syndication Agents.
ABOUT CECO ENVIRONMENTAL
CECO Environmental is a leading environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water and energy transition markets across the global through its key business segments: Engineered Systems and Industrial Process Solutions. Providing innovative technology and application expertise, CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. In regions around the world, CECO works to improve air quality, optimize the energy value chain, and provide customer solutions for applications including power generation, petrochemical processing, general industrial, refining, midstream oil and gas, electric vehicle production, poly silicon fabrication, battery recycling, beverage can, and water/wastewater treatment along with a wide range of other applications. CECO is listed on Nasdaq under the ticker symbol "CECO." Incorporated in 1966, CECO’s global headquarters is in Dallas, Texas. For more information, please visit www.cecoenviro.com.
Company Contact:
Peter Johansson
Chief Financial and Strategy Officer
888-990-6670
investor.relations@onececo.com
Investor Relations Contact:
Steven Hooser and Jean Marie Young
Three Part Advisors, LLC
214-872-2710
investor.relations@onececo.com
FAQ
What is the new credit facility amount for CECO Environmental (CECO)?
How long is the term of CECO's new credit facility?
Can CECO Environmental further increase its new credit facility?
Who is the Administrative Agent for CECO's new credit facility?
