Orion Engineered Carbons, a global supplier of carbon black, issued a $650 million-equivalent, seven-year sustainability-linked term loan B across euros and U.S. dollars. With this transaction, Orion replaced its existing term loan B that was scheduled to mature in July 2024 and termed out maturities to September 2028. The transaction is leverage neutral, resulting in total net leverage of approximately 2.4 times, post issuance.
Goldman Sachs Bank was the sole bookrunner on the refinancing and served as the sole ESG structuring advisor.
“We are a performance-driven organization committed to creating long-term growth and being a responsible global corporate citizen. Our value creation strategy is founded on growing economic profit while also advancing our ESG goals,” Corning Painter, CEO of Orion Engineered Carbons, said. “With that in mind, we are excited to broaden our commitment to responsible growth by securing this sustainability-linked loan, clearly aligning the commitments we have made to our stakeholders with the financing costs of the company. I am particularly proud that the loan has been accepted by the investor community in both European and U.S. markets, reflecting confidence in our financial strength, future business performance and long-term strategy.”
