US carbon black supplier Orion Engineered Carbons has entered into a US$650 million-equivalent seven-year sustainability-linked Term Loan B, across Euros and US Dollars. With this transaction, Orion has replaced its existing Term Loan B that was scheduled to mature in July 2024 and termed out maturities to September 2028. The transaction is leverage neutral, resulting in total net leverage of approximately 2.4 times, post issuance.
“We are a performance-driven organisation committed to creating long-term growth and being a responsible global corporate citizen. Our value creation strategy is founded on growing economic profit while also advancing our ESG goals,” said Corning Painter, Orion’s CEO.
Painter added, “With that in mind, we are excited to broaden our commitment to responsible growth by securing this sustainability-linked loan, clearly aligning the commitments we have made to our stakeholders with the financing costs of the company. I am particularly proud that the loan has been accepted by the investor community in both European and U.S. markets, reflecting confidence in our financial strength, future business performance and long-term strategy.”