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Orion S.A. renews its senior secured revolving credit facility, reducing it to EUR 300 million from EUR 350 million. The credit facility has a five-year term and was oversubscribed by 20 percent. The company aims to reduce net debt and improve net debt to EBITDA ratio. They added new sustainability goals that could reduce the interest rate by 0.05 percent if achieved.
Positive
Orion S.A. successfully renews its credit facility, showing market confidence in its prospects.
The company's cash flow strength led to a reduction in the credit facility.
The oversubscription of the credit facility indicates positive market sentiment towards Orion.
Negative
None.
HOUSTON--(BUSINESS WIRE)--
Orion S.A.(NYSE: OEC), a specialty chemical company, today announced that it has renewed its senior secured revolving credit facility, which was intentionally reduced from EUR 350 million to EUR 300 million, as a result of the company’s stronger cash flow. The credit facility has a five-year term and was oversubscribed by 20 percent, showing the confidence the market has for Orion’s prospects.
“We are excited that our revolving credit facility has been renewed at this point in time, as it provides flexibility for us to cover working capital needs, if needed. Our goal is to continue to reduce our total net debt and improve our net debt to EBITDA ratio. We have made substantial progress on both of these metrics over the past year,” said Jeff Glajch, Orion’s chief financial officer.
The company completed the renewal at relatively similar terms as its previous revolving facility and added a new feature that includes the linkage of revolving facility funding costs to two sustainability goals. They include continuous greenhouse gas intensity reduction and improvement of its annual EcoVadis ESG rating. Under these terms, the interest rate could be reduced by five basis points – or by 0.05 percent - if the company achieves both of its targets.
About Orion S.A.
Orion S.A. (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced as powder or pellets. The material is made to customers’ exacting specifications for tires, coatings, ink, batteries, plastics and numerous other specialty, high-performance applications. Carbon black is used to tint, colorize, provide reinforcement, conduct electricity, increase durability, and add UV protection. Orion has innovation centers on three continents and 15 plants worldwide, offering the most diverse variety of production processes in the industry. The company’s corporate lineage goes back more than 160 years to Germany, where it operates the world’s longest-running carbon black plant. Orion is a leading innovator, applying a deep understanding of customers’ needs to deliver sustainable solutions. For more information, please visit orioncarbons.com.
Forward-Looking Statements
This document contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including regarding the planned payment of an interim dividend. Forward-looking statements are statements of future expectations that are based on current expectations and assumptions and involve known and unknown risks and uncertainties, including risks related to our planned payment of the interim dividend and the other risks and uncertainties listed under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, each of which could cause actual results, performance, or events to differ materially from those expressed or implied in these statements. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. New risk factors and uncertainties emerge from time to time, and it is not possible to predict all risk factors and uncertainties, nor can we assess the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or other information, other than as required by applicable law.
William Foreman
Orion S.A.
Director of Corporate Communications and Government Affairs
william.foreman@orioncarbons.com
Direct: +1 832-445-3305
Mobile: +1 281-889-7833
Source: Orion Engineered Carbons S.A.
FAQ
What is the size of Orion's renewed credit facility?
Orion's credit facility has been reduced to EUR 300 million from EUR 350 million.
What are the new sustainability goals added by Orion?
The new sustainability goals include continuous greenhouse gas intensity reduction and improvement of its annual EcoVadis ESG rating.
What could happen to the interest rate if Orion achieves its sustainability goals?
If Orion achieves its sustainability goals, the interest rate could be reduced by 0.05 percent.
orion engineered carbons is one of the world’s leading suppliers of carbon black. with more than 100 years of industry experience, we offer 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 1.460 employees worldwide, orion engineered carbons runs 14 global production sites and four applied technology centers, focusing on quality supply and collaborative partnerships with customers. orion engineered carbons s.a. shares began trading on the nyse on july 24, 2014, under the ticker symbol “oec.”
