Ferroglobe Amends its Revolving Credit Facility
October 01 2019 - 9:10AM
Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe” or the “Company”)
announced today that it has obtained the consent of its lenders for
and entered into an amendment (the “Amendment”) to its existing
revolving credit agreement (the “RCF”). Among other provisions, the
Amendment:
- reduces the aggregate amount of revolving commitments under the
RCF from $200 million to $150 million;
- reduces the minimum unrestricted cash required to be maintained
by the Company at all times to $70 million;
- adds a requirement for the Company to maintain, at all times,
an aggregate amount of restricted cash equal to (i) the amount
outstanding under the RCF at any time minus (ii) $100 million, in a
blocked deposit account, which shall be in addition to the minimum
cash requirement above;
- provides that any breach of the financial covenants requiring
the Company to maintain a maximum net total leverage ratio or a
minimum interest coverage ratio as of the end of the fiscal quarter
ending September 30, 2019 shall not constitute an event of default
under the RCF until October 30, 2019; and
- imposes additional requirements for the Company to deliver
certain information and documentation to the RCF lenders.
Pedro Larrea, Ferroglobe’s Chief Executive
Officer, commented: “This amendment demonstrates the continued
support of our current lenders and enhances our actual available
liquidity. We would highlight that the amount outstanding under the
RCF has remained constant at $133 million for almost twelve months
and this is not expected to change. As such, the amendment improves
the cash available to the Company by effectively reducing the
aggregate minimum cash requirement under the RCF at current levels
from $150 million to $103 million (representing $70 million of
unrestricted cash and $33 million in a blocked account).” Mr.
Larrea added: “We are now focused on closing the proposed
refinancing of the RCF, with a view to affording the Company
greater operational and financial flexibility. We are in advanced
negotiations on this and remain on track to close in the
short-term.”
About Ferroglobe
Ferroglobe PLC is one of the world’s leading
suppliers of silicon metal, silicon- and manganese- based specialty
alloys and ferroalloys, serving a customer base across the globe in
dynamic and fast-growing end markets, such as solar, automotive,
consumer products, construction and energy. The Company is
based in London. For more information, visit
http://investor.ferroglobe.com.
Forward-Looking Statements
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
Ferroglobe and assumptions that management believe to be
reasonable, but are inherently uncertain. As a result, Ferroglobe’s
actual results, performance or achievements may differ materially
from those expressed or implied by these forward-looking
statements, which are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors
that are, in some cases, beyond Ferroglobe’s control.
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. Ferroglobe does not undertake any
obligation to update publicly any of the forward-looking statements
contained herein to reflect new information, events or
circumstances arising after the date of this press release. You
should not place undue reliance on any forward-looking statements,
which are made only as of the date of this press release.
CONTACT:
Gaurav Mehta EVP – Investor Relations
Email: investor.relations@ferroglobe.com
Ferroglobe (NASDAQ:GSM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ferroglobe (NASDAQ:GSM)
Historical Stock Chart
From Apr 2023 to Apr 2024