Ferroglobe Announces Closing of $100 Million Asset-Based Revolving Credit Facility
The ABL Revolver replaces the Company’s revolving credit facility (the “RCF”). At closing, the initial drawing under the ABL Revolver together with cash from Ferroglobe’s balance sheet will be used to discharge in full the Company’s obligations under the RCF, repurchase certain accounts receivable from the Company’s accounts receivable securitization program and pay associated fees and expenses. Going forward, drawings under the ABL Revolver will be used to fund working capital needs of Globe and its subsidiaries and for general corporate purposes.
At the current drawn amount, the ABL Revolver bears interest of L+3%, versus L+3.5% in the RCF. It also has a minimum liquidity requirement of
Mr. Larrea added, “The replacement of the RCF marks another important step in our overall strategy to de-risk our balance sheet. The new ABL Revolver has no leverage-based or financial ratio-based covenants and reduced liquidity requirements as compared to the RCF, thereby enhancing our flexibility. It is one element of the refinancing strategy previously announced and has been structured to complement the additional financing we are now focusing on, further bolstering our capital structure. We are also executing an aggressive cash generation plan for the coming quarters which envisages significant working capital release. We will update the market on this plan in due course.”
The credit agreement governing the ABL Revolver (the “Credit Agreement”) contains customary covenants, representations and warranties and events of default for financings of this type. The subsidiaries of the Company other than Globe and its subsidiaries will not be restricted under the negative covenants in the Credit Agreement.
This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe Ferroglobe’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “will” and words of similar meaning or the negative thereof.
Forward-looking statements contained in this press release are based on information currently available to
Forward-looking financial information and other metrics presented herein represent Ferroglobe’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.
All information in this press release is as of the date of its release.
EVP – Investor Relations
Source: Ferroglobe PLC