GrafTech has announced a new financing arrangement to enhance liquidity and provide additional operational flexibility amid current industry challenges. The company has secured a commitment and consent letter involving key lenders, including Barclays Bank plc, and holders of over 81% of its existing secured bonds. This agreement will provide GrafTech with new debt financing on competitive terms and extend the maturities on its current debt.
According to the commitment terms, GrafTech will secure $175 million in new senior secured term loans upon closing, along with $100 million in delayed draw term loans accessible for 19 months post-closing, with a maturity set for five years after the transaction closes. Additionally, GrafTech plans to exchange its existing senior secured notes due in 2028 for new second lien notes maturing in 2029, and initiate a consent solicitation to remove most covenants and events of default tied to these notes, thereby releasing associated collateral. The company will also enter into a new $225 million revolving credit facility, replacing existing commitments and extending maturity to 2028, subject to certain conditions.
GrafTech’s CEO, Timothy Flanagan, expressed confidence in the benefits this transaction brings, emphasizing that the extended financing structure supports the company’s liquidity and operational objectives as it navigates ongoing sector-wide issues. Legal and financial advisement is being provided by firms including Kirkland & Ellis LLP and Evercore for GrafTech, with other legal advisors assisting noteholders and revolving lenders.
The company also noted the forward-looking nature of its statements, warning that these projections are subject to risks, including the cyclicality of its market, supply chain vulnerabilities, and broader economic factors. These forward-looking statements hinge on meeting specified conditions and market conditions remaining stable.
For additional details, please refer to GrafTech’s official press release and the latest filings with the SEC.
