According to an 8K filed with the SEC, PNC Bank served as administrative agent and PNC Capital Markets served as structuring agent on Covia’s new three-year credit facility with availability up to $75 million secured by certain accounts receivables.
In addition to the new facility, Covia took several actions in light of the challenges caused by the COVID-19 pandemic and recent dislocations in global oil markets. These actions include:
- The development and implementation of a series of guidelines and practices to improve safe operating procedures throughout the organization to mitigate the spread of COVID-19.
- The elimination of non-essential travel and facilitation of work from home arrangements.
- A reduced active energy capacity of nearly 30% or six million tons annually, including the idling of the Utica, IL and Kermit, TX facilities and the de-rating of capacity at several other facilities.
- The implementation of staffing reductions and other initiatives to reduce overhead expenses by approximately $25 million compared with 2019.
- A reduction in the expected 2020 capital expenditure program by approximately 50% compared with 2019.
“The health and safety of our employees is a top priority, and I am proud of how quickly our organization reacted to continue safe operations in light of the impact of the COVID-19 pandemic,” Richard Navarre, chairman, president and CEO of Covia, said. “Unfortunately, the pandemic, combined with the collapse of oil prices, has had a negative impact on the markets we serve forcing us to take painful, but necessary steps, to adjust our operations to better align with market demand. These actions better position Covia to successfully navigate the current market without impacting our ability to meet the needs of our customers.”
Covia is a provider of diversified mineral solutions to the oil and gas, glass, ceramics, coatings, metals, foundry, polymers, construction, water filtration, sports and recreation markets.