Ferro closed on a new $820 million senior-secured term loan facility and increased its senior-secured revolving credit facility to $500 million. The company will use the proceeds to repay outstanding balances on its prior facility.
The debt facility includes the following:
- $355 million term loan, maturing 2024, with an interest rate of LIBOR + 225 bps
- $235 million term loan, maturing 2024, with an interest rate of LIBOR + 225 bps
- $230 million term loan, raised at a German subsidiary, maturing 2024, with an initial interest rate of LIBOR + 225 bps
- $500 million revolving credit line, maturing 2023, with an initial interest rate of LIBOR + 200 bps
“This refinancing reflects our ongoing efforts to optimize our capital structure, and provides continuing financial flexibility to pursue our innovation and optimization strategy. We are very pleased with the strong demonstration of support from our finance partners,” said Peter Thomas, Ferro chairman, president and CEO.
Deutsche Bank Securities and PNC acted as joint lead arrangers on the debt facilities.
Cleveland-based Ferro supplies functional coatings for glass, metal, ceramic and other substrates and color solutions in the form of specialty pigments and colorants for a broad range of industries and applications.