CAMP HILL, Pa., Aug. 29, 2022 (GLOBE NEWSWIRE) — Harsco Corporation (NYSE:HSC) (the “Company”) today announced that it has obtained an amendment (the “Amendment”) to its senior credit guaranteed existing facilities. Pursuant to the amendment, the maximum net leverage ratio covenant applicable to its revolving credit facility has been reset, among other changes, to provide additional financial flexibility.
The Company’s net debt is capped at 5.50x of Adjusted EBITDA until the quarter ending December 31, 2023 and is reduced quarterly thereafter, reaching 4.00x for the fourth quarter of 2024. covenant relating to the net debt ratio until the third quarter of 2024 is reduced by .50x upon the sale of Harsco Rail.
“This announcement underscores our continued commitment to prudently and proactively improving our balance sheet and financial flexibility,” said Nick Grasberger, Chairman and Chief Executive Officer. “The favorable terms of the amendment, including the reset of our maximum net leverage ratio, will allow us to continue to execute our strategy and strengthen our financial preparedness even in times of economic uncertainty and volatility. We are also delighted the strong support we continue to receive from our banking group for this amendment.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any loans or securities.
About Harsco Corporation
Harsco Corporation is a global market leader providing environmental solutions for industrial and specialty waste streams. Based in Camp Hill, Pennsylvania, the 12,000-employee company operates in more than 30 countries. Harsco common stock is included in the S&P SmallCap 600 Index and the Russell 2000 Index. Additional information is available at www.harsco.com.
Forward-looking statements
The nature of the Company’s business, as well as the number of countries in which it operates, subjects it to changing economic, competitive, regulatory and technological conditions, risks and uncertainties. Pursuant to the “safe harbor” provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, the Company provides the following cautionary statements regarding important factors which, among other things, could cause future results will differ materially from the results contemplated by the forward-looking statements, including the expectations and assumptions expressed or implied herein. Forward-looking statements contained herein may include, among other things, statements about management’s confidence in the performance strategies; expectations regarding new and existing products, technologies and opportunities; and expectations regarding growth, sales, cash flow and earnings. Forward-looking statements can be identified by the use of terms such as “may”, “could”, “expect”, “anticipate”, “intend”, “believe”, “likely”, ” estimate”, “outlook”, “plan” or other comparable terms.
Factors that could cause actual results to differ, possibly materially, from those implied by the forward-looking statements include, but are not limited to: (1) changes in the global business environment in which the Company operates, including changes in general economic conditions or changes due to COVID-19 and governmental and market reactions to COVID-19; (2) changes in foreign exchange rates, interest rates, raw material and fuel costs and capital costs; (3) changes in stock and bond market performance that could affect, among other things, the valuation of the Company’s pension plan assets and accounting for pension assets, liabilities and expenses; (4) changes in governmental laws and regulations, including standards and amounts relating to environmental, occupational health and safety, taxes and import tariffs; (5) changes in market and competition, including pricing pressures, market demand and acceptance of new products, services and technologies; (6) the inability or inability of the Company to protect its intellectual property rights against infringement in one or more of the many countries in which the Company operates; (7) failure to effectively prevent, detect or repair vulnerabilities in the Company’s cybersecurity infrastructure; (8) unplanned business interruptions in one or more of the many countries in which the Company operates due to political instability, civil disobedience, armed hostilities, public health concerns or other calamities; (9) disruptions associated with labor disputes and increased operating costs associated with union organizing; (10) the seasonal nature of the Company’s business; (11) the Company’s ability to successfully enter into new contracts and complete new strategic acquisitions or ventures within the timeframe contemplated, or at all; (12) the Company’s ability to negotiate, enter into and integrate strategic transactions; (13) non-completion of a process to sell the Rail division, as announced on November 2, 2021 under satisfactory conditions, if at all; (14) potential high volatility in capital or commodity markets; (15) inability to retain key officers and employees; (16) the outcome of any disputes with customers, contractors and subcontractors; (17) the financial condition of the Company’s customers, including the ability of customers (particularly those who may be highly indebted, have insufficient liquidity, or whose business is significantly impacted by COVID-19) to maintain their credit availability ; (18) implementation of environmental sanitation issues; (19) risk and uncertainty associated with intangible assets; (20) the risk that the Company may not be able to fully and successfully implement additional actions expected in the Harsco Clean Earth segment due to market or other conditions and fail to deliver the benefits expected results; and (21) other risk factors listed from time to time in the Company’s SEC reports. A more in-depth discussion of these, and other potential risk factors, can be found in Part II, Item 1A, “Risk Factors”, of the Company’s Quarterly Report on Form 10-Q for the quarter. ended June 30, 2022, as well as Part I, Item 1A, “Risk Factors,” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The Company cautions that these factors may not be comprehensive and that many of these factors are beyond the company’s ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no obligation to update forward-looking statements, except as required by law.
