Calgon Carbon Corporation
) announced that it has closed a $300 million syndicated credit
facility to refinance existing debt and provide an additional
$175 million in borrowing capacity. The company's shares rose as
much as around 3% in the trading session a day after the news
release and are up roughly 6.5% since the announcement. The stock
is up roughly 44% so far this year.
The facility is an unsecured five-year revolving loan, which
includes two optional one-year extensions and a five-year
maturity date. It also includes a seven-year delayed draw term
loan which comprises a maximum of three draws for a total
commitment of $75 million. Both loans have certain financial
The new credit facility will be available for strategic growth
initiatives, acquisitions, share repurchases, working capital,
and general corporate purposes. With the facility, Calgon
Carbon's maximum credit capacity will increase from $125 million
to $300 million, which will provide greater flexibility for the
company to pursue its strategic initiatives.
The credit facility was led by PNC Capital Markets LLC and RBS
Citizens N.A. as joint lead arrangers and PNC Bank N.A. as
A few days back, Calgon Carbon released its third-quarter 2013
results. Both revenues and earnings for the quarter came in line
with Zacks Consensus Estimates. The company ended the quarter
with cash and cash equivalents of roughly $30 million, up 65%
year over year. Long-term debt stood at $48.3 million as of Sep
30, 2013, compared with $44.4 million as of Sep 30, 2012.
Calgon Carbon, which is among the prominent pollution control
companies along with
CECO Environmental Corp.
), carries a Zacks Rank #3 (Hold).
Other companies in the pollution control industry worth
Sharps Compliance Corp
Perma-Fix Environmental Services Inc.
). While Sharps Compliance carries a Zacks Rank #1 (Strong Buy),
Perma-Fix Environmental holds a Zacks Rank #2 (Buy).
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
PERMA-FIX ENVIR (PESI): Free Stock Analysis
SHARPS COMPLIAN (SMED): Free Stock Analysis
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