New Five-Year Credit Facility Replaces $350M Revolver
WYOMISSING, Pa.--(BUSINESS WIRE)--Jun. 28, 2013--
Carpenter Technology Corporation (NYSE: CRS) announced today the
successful completion of a $500 million syndicated credit facility. This
five-year revolving line of credit replaces the $350 million revolver
due to expire in June, 2016. The new facility, comprised of ten lenders,
was substantially oversubscribed prior to allocations.
“Favorable markets and rates gave us the opportunity to significantly
increase our financial flexibility with improved pricing and lower
borrowing costs,” said Tony Thene, Senior Vice President and Chief
Financial Officer. “The completion of this $500 million credit facility
contributes to having a financial structure in place that supports the
Company’s overall growth strategy.”
Bank of America Merrill Lynch and J.P.Morgan Securities served as the
Joint Lead Arrangers. Terms of the facility remain largely unchanged
from the prior agreement and include the same two financial covenants,
debt to capital ratio and interest coverage ratio. Pricing was
materially improved as the prior 20 basis point Facility Fee was
replaced with a 15 basis point Commitment Fee, which contributes to a
reduction in the all-in drawn fee by 15 basis points at the current
rating level.
About Carpenter Technology Corporation
Carpenter Technology Corporation, based in Wyomissing, Pa., produces and
distributes specialty alloys, including stainless steels, titanium
alloys and superalloys, and various engineered products. Information
about Carpenter can be found at www.cartech.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ from those projected, anticipated
or implied. The most significant of these uncertainties are described in
Carpenter’s filings with the Securities and Exchange Commission
including its annual report on Form 10-K for the year ended June 30,
2012, the 10Q for the quarters ending September 30, 2012, December 31,
2012 and March 31, 2013 and the exhibits attached to those filings. They
include but are not limited to: (1) expectations with respect to the
synergies, costs and other anticipated financial impacts of the Latrobe
acquisition transaction could differ from actual synergies realized,
costs incurred and financial impacts experienced as a result of the
transaction; (2) the cyclical nature of the specialty materials business
and certain end-use markets, including aerospace, defense, industrial,
transportation, consumer, medical, and energy, or other influences on
Carpenter’s business such as new competitors, the consolidation of
competitors, customers, and suppliers or the transfer of manufacturing
capacity from the United States to foreign countries; (3) the ability of
Carpenter to achieve cost savings, productivity improvements or process
changes; (4) the ability to recoup increases in the cost of energy, raw
materials, freight or other factors; (5) domestic and foreign excess
manufacturing capacity for certain metals; (6) fluctuations in currency
exchange rates; (7) the degree of success of government trade actions;
(8) the valuation of the assets and liabilities in Carpenter’s pension
trusts and the accounting for pension plans; (9) possible labor disputes
or work stoppages; (10) the potential that our customers may substitute
alternate materials or adopt different manufacturing practices that
replace or limit the suitability of our products; (11) the ability to
successfully acquire and integrate acquisitions, including the Latrobe
acquisition; (12) the availability of credit facilities to Carpenter,
its customers or other members of the supply chain; (13) the ability to
obtain energy or raw materials, especially from suppliers located in
countries that may be subject to unstable political or economic
conditions; (14) Carpenter’s manufacturing processes are dependent upon
highly specialized equipment located primarily in facilities in Reading
and Latrobe, Pennsylvania for which there may be limited alternatives if
there are significant equipment failures or catastrophic event; and (15)
Carpenter’s future success depends on the continued service and
availability of key personnel, including members of our executive
management team, management, metallurgists and other skilled personnel
and the loss of these key personnel could affect our ability to perform
until suitable replacements are found. Any of these factors could have
an adverse and/or fluctuating effect on Carpenter’s results of
operations. The forward-looking statements in this document are intended
to be subject to the safe harbor protection provided by Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Carpenter undertakes no
obligation to update or revise any forward-looking statements.
Source: Carpenter Technology Corporation
Carpenter Technology Corporation
Media Inquiries:
William J.
Rudolph, Jr., 610-208-3892
wrudolph@cartech.com
or
Investor
Inquiries:
Michael A. Hajost, 610-208-3476
mhajost@cartech.com