Thermon Completes Debt Refinance Estimates Annual Cash Interest Savings of $ 4 Million
AUSTIN, TX / ACCESSWIRE / September 30, 2021 / Thermon Group Holdings, Inc. (NYSE: THR) (“Thermon”) today announced that it has entered into an amended and restated credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, NA and certain other lenders. Under the terms of the credit agreement, Thermon’s existing $ 140 million B term loan and revolving credit facility were replaced with an $ 80 million senior secured U.S. term loan A, a Canadian senior guaranteed term A of C $ 76 million and a revolving credit facility of $ 100 million. The proceeds from the refinancing were used to repay Thermon’s existing revolver and B-term loan.
“We are pleased to announce this refinancing and the estimated annual savings of $ 4 million in cash interest charges while maintaining a strong balance sheet and the flexibility to continue to invest in the growth of our business,” said Kevin Fox, Senior Vice President and Chief Financial Officer of Thermon. “We are grateful for the relationship with our banking partners in the completion of this new facility and believe this will help us achieve our goal of doubling activity over the next five years through investments in diversification, development technology-based contracts and maintenance. “
The credit agreement was entered into by JPMorgan Chase Bank, NA and BMO Capital Markets Corp. The Revolver and US Term Loan A are currently priced at Adjusted LIBOR plus 162.5 basis points and the Canadian Term Loan A is currently priced at CDOR plus 162.5 basis points. The new facilities are subject to a consolidated leverage ratio clause not exceeding 3.75: 1 for the first four quarters after closing, decreasing to 3.50: 1 thereafter, and they also include vesting leave. . Additional information about the Thermon deal will be available on Form 8-K filed with the Securities and Exchange Commission on September 30, 2021. This information is also available at ir.thermon.com/sec-filings.
Through its global network, Thermon provides safe, reliable and critical industrial process heating solutions. Thermon specializes in providing complete solutions for flow assurance, process heating, temperature maintenance, freeze protection and environmental monitoring. Thermon is headquartered in Austin, Texas. For more information, please visit www.thermon.com.
This press release includes forward-looking statements within the meaning of US federal securities laws in addition to historical information. These forward-looking statements are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding expected savings and business growth. When used herein, the words “anticipate”, “assume”, “believe”, “budget”, “continue”, “contemplate”, “could”, “should” “estimate”, “‘may”, ” plan “,” possible “,” potential “,” foresee “,” project “,” will “,” would “,” future “and similar terms and expressions are intended to identify forward-looking statements in this Release. reflect our current expectations about future events, results or results. These expectations may or may not be met. Some of these expectations may be based on assumptions, data or judgments that prove to be incorrect. In addition, our business and our operations involve many risks and uncertainties, many of which are beyond our control, which could cause our expectations do not come true or otherwise affect our financial condition, results of operations and cash flow.
Actual events, results and results may differ materially from our expectations due to various factors. While it is not possible to identify all of these factors, they include, among others, (i) the outbreak of the novel strain of coronavirus (COVID-19); (ii) general economic conditions and the cyclical nature of the markets we serve; (iii) the future growth of capital investments in energy, chemical processing and power generation; (iv) our ability to operate successfully in foreign countries; (v) our ability to deliver existing orders in our order backlog; (vi) our ability to bid and win new contracts; (vii) the imposition of certain operational and financial restrictions contained in our borrowing agreements; (viii) tax obligations and changes in tax policy; (ix) our ability to successfully develop and improve our products and successfully implement new technologies; (x) competition from various other sources providing similar heat-tracing and process heating products and services, or alternative technologies, to customers; (xi) the composition of our income; (xii) our ability to grow through strategic acquisitions; (xiii) changes in relevant exchange rates; (xiv) impairment of goodwill and other intangible assets; (xv) our ability to attract and retain qualified executives and employees, particularly in our foreign markets; (xvi) our ability to protect our trade secrets; (xvii) our ability to protect our intellectual property; (xiii) our ability to protect data and thwart potential cyber attacks; (xix) a major disruption at one of our manufacturing facilities; (xx) our dependence on subcontractors and third party suppliers; (xxi) our ability to profit from fixed price contracts; (xxii) the credit risk associated with our granting of credit to customers; (xxiii) our ability to carry out our operational initiatives; (xxiv) unforeseen difficulties associated with the expansion, relocation or consolidation of existing facilities; (xxv) potential liability relating to our products as well as the delivery of products and services; (xxvi) our ability to comply with foreign anti-corruption laws; (xxvii) export control regulations or sanctions; (xxviii) changes in government administrative policy; (xxix) geopolitical instability in Russia and Ukraine and associated sanctions by the US government; (xxx) environmental, health and safety laws and regulations as well as environmental responsibilities; and (xxxi) climate change and related greenhouse gas regulations, and (xxxii) the factors listed in Item 1A âRisk Factorsâ included in our Annual Report on Form 10-K for the year ended March 31, 2021 Filed with the Securities and Exchange Commission. and Exchange Commission (the âSECâ) on May 27, 2021 and in all subsequent quarterly reports on Form 10-Q, current reports on Form 8-K or other documents that we have filed or may file with the SEC. Any or a combination of these factors could materially affect our future operating results and could influence whether the forward-looking statements contained in this press release ultimately prove to be correct.
Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in forward-looking statements. We do not intend to update these statements unless we are required to do so under applicable securities laws.
THE SOURCE: Thermon Group Holdings, Inc.
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