Orion S.A. Renews Its Revolving Credit Facility

HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a specialty chemical company, today announced that it has renewed its senior secured revolving credit facility, which was intentionally reduced from EUR 350 million to EUR 300 million, as a result of the company’s stronger cash flow. The credit facility has a five-year term and was oversubscribed by 20 percent, showing the confidence the market has for Orion’s prospects.

“We are excited that our revolving credit facility has been renewed at this point in time, as it provides flexibility for us to cover working capital needs, if needed. Our goal is to continue to reduce our total net debt and improve our net debt to EBITDA ratio. We have made substantial progress on both of these metrics over the past year,” said Jeff Glajch, Orion’s chief financial officer.

The company completed the renewal at relatively similar terms as its previous revolving facility and added a new feature that includes the linkage of revolving facility funding costs to two sustainability goals. They include continuous greenhouse gas intensity reduction and improvement of its annual EcoVadis ESG rating. Under these terms, the interest rate could be reduced by five basis points – or by 0.05 percent - if the company achieves both of its targets.

About Orion S.A.

Orion S.A. (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced as powder or pellets. The material is made to customers’ exacting specifications for tires, coatings, ink, batteries, plastics and numerous other specialty, high-performance applications. Carbon black is used to tint, colorize, provide reinforcement, conduct electricity, increase durability, and add UV protection. Orion has innovation centers on three continents and 15 plants worldwide, offering the most diverse variety of production processes in the industry. The company’s corporate lineage goes back more than 160 years to Germany, where it operates the world’s longest-running carbon black plant. Orion is a leading innovator, applying a deep understanding of customers’ needs to deliver sustainable solutions. For more information, please visit orioncarbons.com.

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