Harsco Completes Refinancing of Term Loans and Extension of Revolving Credit Facility
March 10 2021 - 3:45PM
Harsco Corporation (NYSE:HSC) (the “Company”) announced today that
it amended its existing senior secured credit agreement by
completing a new term loan B facility (the “New Term Loan”) of
$500.0 million and extending the maturity of the existing
$700.0 million revolving credit facility thereunder (the “Revolving
Credit Facility”).
The New Term Loan, which was over-subscribed,
bears interest at a rate per annum of 2.25% over LIBOR, subject to
a 0.50% floor. The New Term Loan has quarterly principal
amortizations of .25% beginning in September 2021 and matures on
March 10, 2028. The proceeds of the New Term Loan were applied to
(a) repay in full the outstanding term loan A and term loan B under
the Credit Facility, and (b) pay related transaction fees and
expenses.
At the same time, the Company’s Revolving Credit
Facility was extended from June 28, 2024 to March 10, 2026 with
favorable covenant modifications. Specifically, the total net
leverage ratio covenant under the facility, currently capped at
5.75x of consolidated adjusted EBITDA, will remain so through the
end of 2021. The Revolving Credit Facility bears interest at a
rate, depending on total net leverage, ranging from 150 to 250
basis points over LIBOR.
“We are extremely pleased to complete the New
Term Loan and amendment, which further improves our financial
flexibility,” said Pete Minan, Senior Vice President and Chief
Financial Officer. “This transaction strengthens Harsco’s financial
position by extending the maturity profile of our debt while
lowering our cash interest costs. Investor support for this
amendment was very positive and reflects the positive trends within
our business and our initiatives to strengthen cash flow and reduce
leverage over the next year. I am also very grateful for the
overwhelming support of our bank group.”
For the Amendment in connection with the New Term Loan, Goldman
Sachs Bank USA, Citigroup Global Markets Inc., BMO Capital Markets
Corp., BOFA Securities, Inc., HSBC Securities (USA) Inc., RBC
Capital Markets/Royal Bank of Canada, PNC Capital Markets LLC, and
Fifth Third Bank, have acted as joint bookrunners and joint lead
arrangers.
This press release shall not constitute an offer
to sell or a solicitation of an offer to purchase any loans or
securities.
ABOUT HARSCO CORPORATION
Harsco Corporation is a global market leader
providing environmental solutions for industrial and specialty
waste streams and innovative technologies for the rail sector.
Based in Camp Hill, PA, the 13,000-employee company operates in
more than 30 countries. Harsco’s common stock is a component of the
S&P SmallCap 600 Index and the Russell 2000 Index. Additional
information can be found at www.harsco.com.
FORWARD LOOKING STATEMENTS
The nature of the Company’s business and the
many countries in which it operates subject it to changing
economic, competitive, regulatory and technological conditions,
risks and uncertainties. In accordance with the “safe harbor”
provisions of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, the
Company provides the following cautionary remarks regarding
important factors that, among others, could cause future results to
differ materially from the results contemplated by forward-looking
statements, including the expectations and assumptions expressed or
implied herein. Forward-looking statements contained herein could
include, among other things, statements about management’s
confidence in and strategies for performance; expectations for new
and existing products, technologies and opportunities; and
expectations regarding growth, sales, cash flows, and earnings.
Forward-looking statements can be identified by the use of such
terms as “may,” “could,” “expect,” “anticipate,” “intend,”
“believe,” “likely,” “estimate,” “outlook,” “plan” or other
comparable terms. Factors that could cause actual results to
differ, perhaps materially, from those implied by forward-looking
statements include, but are not limited to: (1) changes in the
worldwide business environment in which the Company operates,
including changes in general economic conditions or changes due to
COVID-19 and governmental and market reactions to COVID-19;
(2) changes in currency exchange rates, interest rates,
commodity and fuel costs and capital costs; (3) changes in the
performance of equity and bond markets that could affect, among
other things, the valuation of the assets in the Company’s pension
plans and the accounting for pension assets, liabilities and
expenses; (4) changes in governmental laws and regulations,
including environmental, occupational health and safety, tax and
import tariff standards and amounts; (5) market and
competitive changes, including pricing pressures, market demand and
acceptance for new products, services and technologies;
(6) the Company’s inability or failure to protect its
intellectual property rights from infringement in one or more of
the many countries in which the Company operates; (7) failure
to effectively prevent, detect or recover from breaches in the
Company’s cybersecurity infrastructure; (8) unforeseen
business disruptions in one or more of the many countries in which
the Company operates due to political instability, civil
disobedience, armed hostilities, public health issues or other
calamities; (9) disruptions associated with labor disputes and
increased operating costs associated with union organization;
(10) the seasonal nature of the Company’s business;
(11) the Company’s ability to successfully enter into new
contracts and complete new acquisitions or strategic ventures in
the time-frame contemplated, or at all; (12) the integration
of the Company’s strategic acquisitions; (13) potential severe
volatility in the capital markets; (14) failure to retain key
management and employees; (15) the amount and timing of
repurchases of the Company’s common stock, if any; (16) the
outcome of any disputes with customers, contractors and
subcontractors; (17) the financial condition of the Company’s
customers, including the ability of customers (especially those
that may be highly leveraged, have inadequate liquidity or whose
business is significantly impacted by COVID-19) to maintain their
credit availability; (18) implementation of environmental
remediation matters; (19) risk and uncertainty associated with
intangible assets; and (20) other risk factors listed from
time to time in the Company’s reports filed or furnished with the
SEC. A further discussion of these, along with other potential
risk factors, can be found in Part I, Item 1A, “Risk Factors,” of
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2020. The Company cautions that these factors may
not be exhaustive and that many of these factors are beyond the
Company’s ability to control or predict. Accordingly,
forward-looking statements should not be relied upon as a
prediction of actual results. The Company undertakes no duty to
update forward-looking statements except as may be required by
law.
Investor Contact |
Media Contact |
David Martin |
Jay Cooney |
717.612.5628 |
717.730.3683 |
damartin@harsco.com |
jcooney@harsco.com |
Harsco (NYSE:HSC)
Historical Stock Chart
From Apr 2024 to May 2024
Harsco (NYSE:HSC)
Historical Stock Chart
From May 2023 to May 2024