Ferro amends senior credit facility

By Scott Suttell
CRAIN'S CLEVELAND BUSINESS

Published: March 28, 2013 1:31 pm ET
Updated: March 28, 2013 1:33 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations A. Schulman Inc., Ferro Corp.

MAYFIELD HEIGHTS OHIO — Ferro Corp., which is the object of an unsolicited takeover offer by Fairlawn, Ohio-based A. Schulman Inc., said it has amended its existing senior credit facility and has reduced its revolving loan commitment by $100 million.

The producer of specialty chemicals said the previously announced sale of its solar pastes assets "increased operating cash flows and significantly reduced the size of the company's precious metal consignment program and other working capital needs."

As a result, Ferro said it's reducing the company's revolving loan commitment to $250 million from $350 million. The amendment "will lower annual commitment fees by approximately $500,000 and modify certain financial and leverage ratio covenants," the company said in a news release.

"Between cash on hand and expected cash from operations, we believe Ferro has sufficient cash resources to fully fund the initiatives now underway to reduce operating costs by over $50 million by the end of 2014," said Peter Thomas, Ferro's interim president and CEO, in a statement.

"By amending Ferro's credit facility, very little of which currently has been utilized, we have gained significant additional financial flexibility to expand upon our cost savings programs and execute on other initiatives in our value creation strategy," he said.


Comments

Ferro amends senior credit facility

By Scott Suttell
CRAIN'S CLEVELAND BUSINESS

Published: March 28, 2013 1:31 pm ET
Updated: March 28, 2013 1:33 pm ET

Post Your Comments


Back to story


More stories

Image

Ukraine's Group DF may be forced to sell Crimea-based additives plant

July 28, 2014 10:12 am ET

Group DF, the industrial business of Ukrainian tycoon Dmitry Firtash, may be forced to sell off Eastern Europe's biggest producer of titanium oxide,...    More

Image

DuPont resins help take Nike golf balls 'Fore!'ward

July 25, 2014 1:07 pm ET

It may be difficult to imagine just how much science, not to mention rubber and plastic components, go into a golf ball. But global giant DuPont Co....    More

Image

Bioplastics maker wins government funding

July 25, 2014 12:13 pm ET

Canadian bioplastics maker Solegear Bioplastics Inc. has won $1.6 million in funding from the government-sponsored Western Innovation Initiative...    More

Image

Report: biodegradeable plastics use in Europe to grow 12 percent

July 25, 2014 10:25 am ET

The biodegradable plastics market in Europe is forecast to witness 12 percent compound growth during 2014-19, according to TechSci Research's...    More

Image

Metals and plastics company NN to buy Autocam in $300 million deal

July 25, 2014 10:07 am ET

A Tennessee metals and plastics company said it has agreed to acquire auto parts supplier Autocam Corp. in a deal valued at $300 million.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events