Minerals Technologies Inc. (MTI) has successfully completed a significant debt refinancing, as announced in a recent press release. The company closed a new seven-year $575 million senior secured Term Loan B (TLB) and increased its Revolving Credit Facility (Revolver) from $300 million to $400 million. The proceeds from the TLB will be used to refinance MTI’s existing $523 million Term Loan A and repay outstanding Revolver borrowings.
This transaction extends the weighted average tenor of MTI’s capital structure to more than five years and increases the company’s liquidity by $150 million. Notably, the refinancing is neutral to the company’s leverage position, reflecting the strong credit profile of the company.
Erik Aldag, Chief Financial Officer, highlighted the company's satisfaction with the refinancing, emphasizing the improved balance sheet flexibility achieved by extending maturities and increasing liquidity. This move positions MTI's balance sheet even stronger and better supports the company's long-term growth strategy.
Looking at the company’s financial performance, MTI reported global sales of $2.2 billion in 2023. This refinancing, coupled with MTI's strong sales performance, underlines the company's commitment to maintaining a robust financial position to support its ongoing operations and growth initiatives. As a result of these announcements, the company's shares have moved -1.7% on the market, and are now trading at a price of $83.2. If you want to know more, read the company's complete 8-K report here.
