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Calgon Closes $300M Credit Facility, Shares Up

Zacks Equity Research

Calgon Carbon Corporation (CCC) announced that it has closed a $300 million syndicated credit facility to refinance existing debt and provide an additional $175 million in borrowing capacity. The company's shares rose as much as around 3% in the trading session a day after the news release and are up roughly 6.5% since the announcement. The stock is up roughly 44% so far this year.

The facility is an unsecured five-year revolving loan, which includes two optional one-year extensions and a five-year maturity date. It also includes a seven-year delayed draw term loan which comprises a maximum of three draws for a total commitment of $75 million. Both loans have certain financial restrictions.

The new credit facility will be available for strategic growth initiatives, acquisitions, share repurchases, working capital, and general corporate purposes. With the facility, Calgon Carbon’s maximum credit capacity will increase from $125 million to $300 million, which will provide greater flexibility for the company to pursue its strategic initiatives.

The credit facility was led by PNC Capital Markets LLC and RBS Citizens N.A. as joint lead arrangers and PNC Bank N.A. as administrative agent
A few days back, Calgon Carbon released its third-quarter 2013 results. Both revenues and earnings for the quarter came in line with Zacks Consensus Estimates. The company ended the quarter with cash and cash equivalents of roughly $30 million, up 65% year over year. Long-term debt stood at $48.3 million as of Sep 30, 2013, compared with $44.4 million as of Sep 30, 2012.

Calgon Carbon, which is among the prominent pollution control companies along with CECO Environmental Corp. (CECE), carries a Zacks Rank #3 (Hold).

Other companies in the pollution control industry worth considering are Sharps Compliance Corp (SMED) and Perma-Fix Environmental Services Inc. (PESI). While Sharps Compliance carries a Zacks Rank #1 (Strong Buy), Perma-Fix Environmental holds a Zacks Rank #2 (Buy).

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Read the Full Research Report on PESI
Read the Full Research Report on CECE
Read the Full Research Report on SMED

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