Harsco Completes Amendment to its Credit Facility
29 August 2022 - 10:15PM
Harsco Corporation (NYSE: HSC) (the “Company”) announced today that
it has obtained an amendment (the “Amendment”) of its existing
senior secured credit facilities. Pursuant to the Amendment, the
maximum net leverage ratio covenant applicable to its revolving
credit facility was reset, among other changes, to provide
additional financial flexibility.
The Company’s net leverage is capped at 5.50x of
Adjusted EBITDA through the quarter ending December 31, 2023 and is
reduced quarterly thereafter, reaching 4.00x for the fourth quarter
in 2024. The net leverage ratio covenant through the third quarter
of 2024 is decreased by .50x upon the sale of Harsco Rail.
“This announcement underscores our ongoing
commitment to prudently and proactively enhancing our balance sheet
and financial flexibility,” said Nick Grasberger, Chairman &
CEO. “The favorable terms of the amendment, including the reset of
our maximum net leverage ratio covenant, will allow us to continue
executing our strategy and strengthen our financial preparedness
even in times of economic uncertainty and volatility. We are also
pleased by the strong support we continue to receive from our bank
group for this amendment.”
This press release shall not constitute an offer
to sell or a solicitation of an offer to purchase any loans or
securities.
About Harsco CorporationHarsco
Corporation is a global market leader providing environmental
solutions for industrial and specialty waste streams. Based in Camp
Hill, PA, the 12,000-employee company operates in more than 30
countries. Harsco’s common stock is a component of the S&P
SmallCap 600 Index and the Russell 2000 Index. Additional
information can be found at www.harsco.com.
Forward-Looking StatementsThe
nature of the Company's business, together with the number of
countries in which it operates, subject it to changing economic,
competitive, regulatory and technological conditions, risks and
uncertainties. In accordance with the "safe harbor" provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, the Company provides the following
cautionary remarks regarding important factors that, among others,
could cause future results to differ materially from the results
contemplated by forward-looking statements, including the
expectations and assumptions expressed or implied herein.
Forward-looking statements contained herein could include, among
other things, statements about management's confidence in and
strategies for performance; expectations for new and existing
products, technologies and opportunities and expectations regarding
growth, sales, cash flows, and earnings. Forward-looking statements
can be identified by the use of such terms as "may," "could,"
"expect," "anticipate," "intend," "believe," "likely," "estimate,"
"outlook," "plan" or other comparable terms.
Factors that could cause actual results to
differ, perhaps materially, from those implied by forward-looking
statements include, but are not limited to: (1) changes in the
worldwide business environment in which the Company operates,
including changes in general economic conditions or changes due to
COVID-19 and governmental and market reactions to COVID-19; (2)
changes in currency exchange rates, interest rates, commodity and
fuel costs and capital costs; (3) changes in the performance of
equity and bond markets that could affect, among other things, the
valuation of the assets in the Company's pension plans and the
accounting for pension assets, liabilities and expenses; (4)
changes in governmental laws and regulations, including
environmental, occupational health and safety, tax and import
tariff standards and amounts; (5) market and competitive changes,
including pricing pressures, market demand and acceptance for new
products, services and technologies; (6) the Company's inability or
failure to protect its intellectual property rights from
infringement in one or more of the many countries in which the
Company operates; (7) failure to effectively prevent, detect or
recover from breaches in the Company's cybersecurity
infrastructure; (8) unforeseen business disruptions in one or more
of the many countries in which the Company operates due to
political instability, civil disobedience, armed hostilities,
public health issues or other calamities; (9) disruptions
associated with labor disputes and increased operating costs
associated with union organization; (10) the seasonal nature of the
Company's business; (11) the Company's ability to successfully
enter into new contracts and complete new acquisitions or strategic
ventures in the time-frame contemplated, or at all; (12) the
Company's ability to negotiate, complete, and integrate strategic
transactions; (13) failure to complete a process for the
divestiture of the Rail division, as announced on November 2, 2021
on satisfactory terms, or at all; (14) potential severe volatility
in the capital or commodity markets; (15) failure to retain key
management and employees; (16) the outcome of any disputes with
customers, contractors and subcontractors; (17) the financial
condition of the Company's customers, including the ability of
customers (especially those that may be highly leveraged, have
inadequate liquidity or whose business is significantly impacted by
COVID-19) to maintain their credit availability; (18)
implementation of environmental remediation matters; (19) risk and
uncertainty associated with intangible assets; (20) the risk that
the Company may be unable to implement fully and successfully the
expected incremental actions at the Harsco Clean Earth Segment due
to market conditions or otherwise and may fail to deliver the
expected resulting benefits; and (21) other risk factors listed
from time to time in the Company's SEC reports. A further
discussion of these, along with other potential risk factors, can
be found in Part II, Item 1A, "Risk Factors," of the Company’s
Quarterly Report on Form 10-Q for the quarter-ended June 30, 2022,
as well as Part I, Item 1A, "Risk Factors," of the Company's Annual
Report on Form 10-K for the year ended December 31, 2021. The
Company cautions that these factors may not be exhaustive and that
many of these factors are beyond the Company's ability to control
or predict. Accordingly, forward-looking statements should not be
relied upon as a prediction of actual results. The Company
undertakes no duty to update forward-looking statements except as
may be required by law.
Investor ContactDavid
Martin717.612.5628damartin@harsco.com |
Media ContactJay
Cooney717.730.3683jcooney@harsco.com |
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