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

DuPont exec: Still lots of lightweighting needed in the auto industry

March 23, 2015 6:00 am ET

In that role, Jeffrey Sternberg is responsible for bringing the breadth of DuPont advanced materials — as well as renewably sourced materials...    More

Image

Survey: New resins required to meet evolving industry needs

March 23, 2015 9:14 am ET

The work of materials firms is far from over, according to the results of a recent survey conducted by DuPont Co. and Plastics News.    More

Image

Hall of Fame: Norwood honored for his invention of the loop reactor

March 22, 2015 6:00 am ET

Donald Norwood's invention in 1957 of the loop reactor to produce polyethylene slashed production costs by 70 to 80 percent, and the material spread...    More

Image

Proposed Cardia-Stellar merger labeled 'not fair,' but still 'reasonable'

March 20, 2015 10:34 am ET

If the proposed merger of two Australian bioplastics companies goes ahead, the new company will be called Secos Group Ltd. and have annual sales of...    More

Image

Resin prices continue downward slide

March 20, 2015 6:00 am ET

The plastic resin market may not be known for its limbo dancers — but buyers continue to look at prices and sing out: How low will they go?    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events