Amsterdam, 30 November 2021 --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") is pleased to announce that it has entered into a new $350 million 7-year senior secured term loan B facility ("term loan") and a $200 million 5-year senior secured revolving credit facility ("revolver"). The total facility amount of $550 million replaces AMG’s existing credit facility and extends our term loan maturity from 2025 to 2028 and revolver maturity from 2023 to 2025. AMG will use the proceeds of the new term loan to refinance its existing credit facility.
Further strengthening AMG’s commitment to Environmental, Social and Governance ("ESG"), we have embedded annual CO2 intensity reduction targets into the Revolving Credit Facility, making it a Sustainability Linked Loan.
Moody's Investors Service ("Moody's") assigned a Ba3 rating to the new senior secured credit facility, affirmed our B2 corporate family rating and changed their outlook to positive from stable. S&P Global Ratings assigned a BB- to the new facility, affirmed our B+ issuer credit rating and revised their outlook to stable from negative.
The refinancing was well received in the debt markets, allowing AMG to secure attractive pricing while enhancing liquidity, improving flexibility, and extending its debt maturity profile.
HSBC Securities (USA) Inc. ("HSBC") acted as sole bookrunner on the credit facilities. Joint lead arrangers were HSBC, Citibank, N.A. ("Citi"), BofA Securities Inc. ("BofA") and JPMorgan Chase Bank, N.A ("JPM"). Fifth Third Bank, National Association and ABN AMRO Securities (USA) LLC acted as co-managers. HSBC and ABN AMRO Bank N.V. acted as Joint Sustainability Coordinators.
Dr. Heinz Schimmelbusch, Chief Executive Officer of AMG, stated, “We want to thank our joint lead arrangers HSBC, Citi, BofA and JPM for their efficient work. The new long-term facility represents one very important building block in the execution of our stated target to increase EBITDA to $350 million, or more, in 5 years, or less. We are also happy to have a Sustainability Linked Loan. AMG is deeply invested in the subject of ESG, and is dedicated to producing critical materials in a sustainable and responsible manner. AMG was built to be a global leader in critical materials which are vital to the transition to clean energy and energy saving strategies.”