Ashland announces plan to refinance Ashland LLC's senior notes due 2018 with a new senior secured term loan B facility
May 15 2017 - 8:30AM
COVINGTON, KY, May 15, 2017 -
Ashland Global Holdings Inc. ("Ashland") (NYSE: ASH) announced
today that its indirect, wholly owned subsidiary, Ashland LLC (the
"Company") is seeking to obtain a new $600 million 7-year senior
secured term loan B facility to retire the Company's 3.875% senior
notes due 2018 (the "Notes").
In addition, the Company intends
to refinance its existing $800 million senior unsecured revolving
credit facility with a new $800 million 5-year senior secured
revolving credit facility. The Company is also seeking to obtain
new senior secured term loan A facilities, consisting of a new $250
million 3-year term loan A facility and a new $250 million 5-year
term loan A facility, to finance a portion of the consideration for
the Company's previously announced, pending acquisition of
Pharmachem Laboratories, Inc. ("Pharmachem").
This news release shall not
constitute an offer to sell, or a solicitation of an offer to buy,
any security, including the Notes. No offer, solicitation, or sale
will be made in any jurisdiction in which such an offer,
solicitation, or sale would be unlawful.
About
Ashland
Ashland Global Holdings Inc.
(NYSE: ASH) is a premier global specialty chemicals company serving
customers in a wide range of consumer and industrial markets,
including adhesives, architectural coatings, automotive,
construction, energy, food and beverage, personal care and
pharmaceutical. At Ashland, we are 6,000 passionate, tenacious
solvers - from renowned scientists and research chemists to
talented engineers and plant operators - who thrive on developing
practical, innovative and elegant solutions to complex problems for
customers in more than 100 countries. Visit ashland.com to
learn more.
C-ASH
Forward-Looking
Statements
This news release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. Ashland has identified
some of these forward-looking statements with words such as
"anticipates," "believes," "expects," "estimates," "is likely,"
"predicts," "projects," "forecasts," "objectives," "may," "will,"
"should," "plans" and "intends" and the negative of these words or
other comparable terminology. These forward-looking statements
include statements relating to Ashland's expectation that the
proposed acquisition of Pharmachem will be completed before the end
of the June quarter and that the proposed acquisition will be
accretive to earnings per share. In addition, Ashland may from time
to time make forward-looking statements in its annual reports,
quarterly reports and other filings with the SEC, news releases and
other written and oral communications. These forward-looking
statements are based on Ashland's expectations and assumptions, as
of the date such statements are made, regarding Ashland's future
operating performance and financial condition, the strategic and
competitive advantages of Ashland following the final distribution
of the Valvoline business, as well as the economy and other future
events or circumstances. Ashland's expectations and assumptions
include, without limitation, internal forecasts and analyses of
current and future market conditions and trends, management plans
and strategies, operating efficiencies and economic conditions
(such as prices, supply and demand, cost of raw materials, and the
ability to recover raw-material cost increases through price
increases), and risks and uncertainties associated with the
following: Ashland's substantial indebtedness (including the
possibility that such indebtedness and related restrictive
covenants may adversely affect Ashland's future cash flows, results
of operations, financial condition and its ability to repay debt);
the impact of acquisitions and/or divestitures Ashland has made or
may make, including the proposed acquisition of Pharmachem
(including the possibility that Ashland may not complete the
proposed acquisition of Pharmachem or Ashland may not realize the
anticipated benefits from such transactions); and severe weather,
natural disasters, and legal proceedings and claims (including
environmental and asbestos matters). Various risks and
uncertainties may cause actual results to differ materially from
those stated, projected or implied by any forward-looking
statements, including, without limitation, risks and uncertainties
affecting Ashland that are described in Ashland's most recent Form
10-K (including Item 1A Risk Factors) filed with the SEC, which is
available on Ashland's website at http://investor.ashland.com or on
the SEC's website at http://www.sec.gov. Ashland believes its
expectations and assumptions are reasonable, but there can be no
assurance that the expectations reflected herein will be achieved.
Unless legally required, Ashland undertakes no obligation to update
any forward-looking statements made in this press release whether
as a result of new information, future events or otherwise.
Information on Ashland's website is not incorporated into or a part
of this news release.
(TM) Trademark, Ashland or its
subsidiaries, registered in various countries.
FOR FURTHER
INFORMATION:
Investor Relations:
Seth A. Mrozek
+1 (859) 815-3527
samrozek@ashland.com
Media Relations:
Gary Rhodes
+1 (859) 815-3047
glrhodes@ashland.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ashland Inc. via Globenewswire
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