ATLANTA - Chart Industries , Inc. (NYSE: NYSE:GTLS), a company specializing in clean energy and industrial gas solutions, has announced a successful repricing of its $1.631 billion senior secured term loan facility, which is due to mature on March 17, 2030.
The revised terms will see the interest rate on the outstanding loan amounts tied to the Secured Overnight Financing Rate (SOFR) with a 0.50% floor, plus a margin of 2.50%. This adjustment marks a decrease of 0.75% per annum from the previous SOFR margin and also eliminates a 0.10% credit spread adjustment.
The company anticipates that these changes will lead to an annual reduction of approximately $14 million in interest expenses for the term loan. The implementation of the repricing is set to occur through an amendment to Chart’s fifth amended and restated credit agreement, with an expected closure in July 2024, pending customary closing conditions and the finalization of definitive documentation.
Chart Industries operates globally, providing technology and services for various applications, including liquefied natural gas, hydrogen, biogas, and CO2 capture. The company emphasizes its commitment to environmental, social, and governance (ESG) excellence for both its operations and its customers.
This financial move is part of Chart’s broader strategy to optimize its capital structure and reduce financing costs.
The information is based on a press release statement from Chart Industries.
InvestingPro Insights
As Chart Industries (NYSE: GTLS) maneuvers to optimize its capital structure through the recent repricing of its senior secured term loan, a glance at the company's financial health and market performance provides a broader context for investors. With a market capitalization of approximately $5.25 billion, Chart Industries is positioned as a significant player in the clean energy and industrial gas sectors. According to InvestingPro data, the company's revenue growth has been robust, with an impressive 110.73% increase over the last twelve months as of Q1 2024.
InvestingPro Tips highlight that while Chart Industries operates with a notable debt burden, analysts are optimistic about the company's future, expecting net income and sales to grow this year. Additionally, Chart Industries is trading at a high earnings multiple with a P/E ratio of 51.67, indicating investor confidence in the company's earnings potential. The company's PEG ratio, which measures the price of a stock relative to its earnings growth rate, stands at a low 0.25, suggesting that the stock may be undervalued given its growth prospects.
Despite a volatile stock price, Chart Industries has been profitable over the last twelve months, and analysts predict profitability will continue this year. It's worth noting for shareholders and potential investors that the company does not pay a dividend, directing its capital towards growth and operational advancements instead. For those interested in a deeper analysis, InvestingPro provides additional insights, with 9 analysts having recently revised their earnings estimates downwards for the upcoming period. To explore these insights further and for additional tips, visit InvestingPro's dedicated page for Chart Industries at https://www.investing.com/pro/GTLS and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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