Just two years ago, SGL Carbon's net debt amounted to €287 million with a leverage of 3.1. Today, SGL Carbon reports that it has successfully completed its refinancing with the announcement of the full redemption of the corporate bond. Net debt as of March 31, 2023 has reduced to €174 million with a leverage of 1.0.
SGL Carbon today informed the bondholders that it will redeem the remaining outstanding shares of the Corporate Bond (ISIN: XS1945271952 / maturing in September 2024) for €237.4 million on July 28, 2023 at par plus accrued interest.
To repay the corporate bond, SGL Carbon will use the funds from the successful placement of the €119 million convertible bond in June 2023 and the €75 million term loan facility granted by the Company's core banks in March 2023, as well as existing liquidity.
SGL Carbon has thus created a stable financing structure that will enable it to continue to push ahead with its growth strategy.
The refinancing of SGL Carbon comprised several transactions, including the successful placement of a convertible bond in September 2022 in amount of €102 million (maturity in 2027) with a concurrent repurchase offer to the holders of the convertible bond with an original maturity in September 2023. This convertible bond was repaid in full in March 2023.
Furthermore, in March 2023, the revolving credit facility provided to the Company by six of its core banks was extended in maturity until 2026 and extensively amended. Under the amended facilities agreement, SGL Carbon now has access to a liquidity reserve of €100 million for general corporate purposes and a term loan facility of €75 million, which will be used to refinance the corporate bond. Both credit lines include an ESG component that provides for a margin adjustment for the achievement of certain ESG targets.
A further convertible bond of €119 million, maturing in 2028, was issued in June 2023 and as already outlined, will be used together with the term loan facility and existing liquidity for the early repayment of the secured corporate bond (original maturity in September 2024).
"With the successful completion of the refinancing, we are now ideally positioned to focus on the expansion of our profitable businesses in the coming years," said Dr. Torsten Derr, CEO of SGL Carbon SE. "The successful placement of the two convertible bonds and the extension of the credit facilities demonstrate the confidence of investors and banks in the future prospects of SGL Carbon and its long-term growth strategy," added Thomas Dippold, CFO of the Company.