- Reduction of bonds over $1 billion
- Improved operational flexibility to better serve customers and other stakeholders
- Strengthening the competitive position of high-quality assets
- Emerges with approximately $175 million in total cash
INDEPENDENCE, Ohio, Dec. 31 28, 2020 (GLOBE NEWSWIRE) — Covia today announced that it has successfully completed its financial restructuring and exited Chapter 11. Through this restructuring, Covia has reduced its long-term debt by approximately $750 million and its fixed costs, including railcar obligations, of an additional $300 million.
“Today marks a new start for Covia. Through this reorganization process, we are emerging as a stronger business that will better serve our customers and other stakeholders with a sustainable capital structure and improved operational flexibility,” said Richard Navarre, Chief Executive Officer and President. “A big thank you to our employees, customers, suppliers and lenders, who have all played an important role in creating a stronger Covia.”
Mr. Navarre added: “Covia’s mineral solutions and diversified services will continue to be essential inputs into products that are important parts of everyday life. By emerging as a more streamlined organization backed by owners with strong financial resources and industrial minerals expertise, we have improved our ability to accelerate the growth of our higher margin industrial segment and be the supplier at low cost for our customers. We are confident that we emerge from this process well positioned for long-term success. »
Following the exit from the restructuring, the reinforced capital structure of the Company consists of:
- Approximately $175 million in total liquidity, consisting of $105 million in cash and $70 million in availability under a $135 million asset-based loan facility that is expected to mature in December 2025 and provided by PNC Bank, NA; and
- An $806 million Term Loan B maturing in July 2026.
Kirkland & Ellis LLP, PJT Partners, LP and AlixPartners, LLP advised the Company throughout this reorganization.
Additional information about Covia’s restructuring is available on the website of the company’s claims and notices agent, Prime Clerk LLC, at https://cases.primeclerk.com/Covia. The Company has also set up a call center for questions: 877-606-3610 if calling from outside the United States or Canada, or 929-955-3452 if calling from outside the United States or from Canada.
Covia is a leading provider of diversified mineral solutions for the oil and gas, glass, ceramics, coatings, metals, foundry, polymers, construction, water filtration, sports and recreation. The Company serves its industrial customers through a wide range of high quality products, including high purity silica sand, nepheline syenite, feldspar, clay, kaolin, resin systems and materials. coated, delivered via its complete distribution network. Covia offers its energy customers an unparalleled selection of proppants, additives and coated product solutions to improve well productivity and address surface and downhole challenges in all environments of wells. Covia has established longstanding relationships with a large customer base of blue chip clients. Underlying these strengths is an unwavering commitment to safety and sustainability, further enhancing the value Covia delivers to all of its stakeholders. For more information, visit CoviaCorp.com.
This communication contains forward-looking statements. Forward-looking statements can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plans”, “continues” or other similar words. Forward-looking statements are not historical facts and involve inherent risks and uncertainties. Several factors could cause actual results to differ materially from those contained in the forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.