Glatfelter Corporation, a supplier of engineered materials, completed a series of refinancing transactions, including:
- Repaying in full its existing €220 million ($239.26 million) term loan that would have matured in February 2024, thereby eliminating all near-term debt maturities
- Amending its existing syndicated revolving credit facility led by PNC Bank as administrative agent, giving it access to a $250 million revolving credit facility to finance working capital needs and a new covenant structure that reflects the company’s current operating environment and liquidity
- Closing on a previously announced six-year, €250 million ($271.88 million) senior secured term loan facility from certain affiliates of Angelo Gordon
With this refinancing, Glatfelter can extend its debt maturity profile, with no material debt coming due prior to the maturity of the revolving credit facility in September 2026. The financial flexibility gives the company runway to execute its various initiatives before it needs to re-access the debt markets.
“Today’s successful completion of our refinancing plan eliminates the execution risk from the financial markets and leaves Glatfelter and the management team 100% focused on implementing our turnaround strategy. Despite the recent volatile capital markets, we were able to achieve a positive outcome in combination with our long-standing relationship bank group and our new financing partners at Angelo Gordon. The company and its balance sheet are well-positioned for the future,” Thomas Fahnemann, president and CEO of Glatfelter, said.
Lazard acted as financial advisor to Glatfelter in the refinancing and Proskauer Rose acted as legal advisor.