PNC delivered a $135 million asset-based loan to Covia in the company’s recent Chapter 11 emergence.
As of Covia’s emergence, San Francisco-based private equity investment firm Golden Gate Capital invested in Covia and is now the largest individual shareholder. Ropes & Gray and Nob Hill Law Group served as legal advisors to Golden Gate Capital.
“We have long admired Covia for their leading product portfolio, robust distribution network and commitment to continued innovation, and are excited to add this great company to our roster of industrials investments,” Dave Thomas, managing director at Golden Gate Capital, said. “We deeply appreciate and share Covia’s commitment to delivering customer-driven solutions and are excited to leverage our industry experience to help the company continue providing high-quality products to leading companies in the industrial and energy markets.”
Kirkland & Ellis, PJT Partners and AlixPartners advised Covia in the company’s restructuring.
Covia’s long-term debt was reduced by approximately $750 million and its fixed costs (including railcar obligations) were reduced by an additional $300 million.
“Today marks a new beginning for Covia. Through this reorganization process, we emerge as a stronger company that will better serve our customers and other stakeholders with a sustainable capital structure and improved operational flexibility,” Richard Navarre, CEO and president of Covia, said. “Many thanks go to our employees, customers, vendors and lenders, all of whom played important roles in creating a stronger Covia.
“Covia’s diversified mineral solutions and services will continue to be critical inputs in products that are important parts of everyday life. By emerging as a more streamlined organization backed by owners with strong financial resources and expertise in the industrial minerals space, we have improved our ability to accelerate growth in our higher-margin industrial segment and be the low-cost provider to our customers. We are confident that we are emerging from this process positioned for long-term success,” Navarre added.
Following emergence from the restructuring, the company’s capital structure consists of:
- Approximately $175 million in total liquidity, consisting of $105 million in cash and $70 million of availability under a $135 million asset-based lending facility expected to mature in December 2025 and provided by PNC Bank
- An $806 million term loan B maturing in July 2026
Covia is a provider of diversified mineral solutions to oil and gas, glass, ceramics, coatings, metals, foundry, polymers, construction, water filtration, sports and recreation markets.