Specialty chemicals maker
) fully-owned unit Amvac Chemical Corporation and its affiliates
have entered into an amended and restated credit facility which
will offer support to the global growth of its businesses.
AMER VANGUARD (AVD): Free Stock Analysis
FERRO CORP (FOE): Free Stock Analysis Report
MINERAL TECH (MTX): Free Stock Analysis
OM GROUP INC (OMG): Free Stock Analysis
To read this article on Zacks.com click here.
The expanded bank credit facility has a five-year term and
consists of a $200 million revolving credit line and a $100
million accordion feature (an option that gives the borrower
rights to increase the credit line). It replaces the earlier
credit facility that consisted of $62 million term commitments,
$75 million revolving credit line and an accordion feature of $50
In addition, the new facility includes borrowing capacity of $50
million to American Vanguard's Dutch subsidiaries and allows the
buyback of its common stock in amounts of up to $20 million
annually or $50 million in total over the five-year term. The
facility also offers increased flexibility in capital spending,
enhanced capacity to make strategic investments and reduced
overall borrowing rates. The lenders for the new facility are led
by Bank of the West.
The new facility provides American Vanguard with greater
flexibility and will help it to grow its crop protection and pest
control franchises by allowing it to acquire additional products,
develop new technologies and expand internationally.
American Vanguard makes specialty chemical products for
agricultural and commercial applications. The company develops
and markets an array of chemicals, including insecticides,
fungicides and herbicides, for crops, human and animal health
protection. American Vanguard has the largest assortment of corn
soil insecticides coupled with the most advanced dispensing
American Vanguard's first-quarter 2013 profit nearly doubled on
the back of strong market demand for its corn herbicide and
insecticide products. It posted a profit of $16.9 million in the
reported quarter, a 94% surge from a profit of $8.7 million
recorded a year ago.
Revenues shot up 39% year over year to $121.5 million in the
reported quarter, buoyed by strong adoption of American
Vanguard's granular soil insecticides and Impact herbicide in the
domestic corn market.
American Vanguard is optimistic about 2013 and feels that it is
well placed to meet the increasing demand for soil insecticides
by maintaining full production of its products and proprietary
American Vanguard currently carries a Zacks Rank #1 (Strong Buy).
Other companies in the specialty chemicals industry with
favorable Zacks Rank are
OM Group Inc.
Minerals Technologies Inc.
). While OM Group holds a Zacks Rank #1 (Strong Buy), both Ferro
and Minerals Technologies retain a Zacks Rank #2 (Buy).