Ecovyst Secures Lower Rates and Extended Maturity on $873 Million Term Loan

Ecovyst

MALVERN, PAEcovyst Inc. (NYSE: ECVT) announced it recenlty amended and extended its existing senior secured term loan facility. The revised loan, totaling $873 million, features a lower interest rate margin and an extended maturity date.

The new terms set the interest rate at a floating rate of SOFR plus 2.25 percent annually, down from the previous maximum rate of SOFR plus 2.75 percent. The loan will mature in June 2031, extending the term by three years. Additionally, the amendment eliminates the Credit Spread Adjustment of 10 basis points.

“We are very pleased with the favorable outcome of the refinancing,” said Mike Feehan, Vice President and Chief Financial Officer. “The market continues to reward Ecovyst with attractive borrowing rates due to our strong operating results and cash flow generation.”

Feehan highlighted that the amendment would provide greater financial flexibility for Ecovyst, allowing the company to invest in growth opportunities. The refinancing is expected to reduce the company’s annual cash interest payments by approximately $3 million.

This move comes as Ecovyst aims to capitalize on its robust financial performance, positioning itself for future investments and expansion.

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.

READ:  Trinseo to Discuss Q2 2024 Financial Results in Upcoming Conference Call