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CECO Environmental Upsizes Credit Facility to $400 Million

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CECO Environmental Corp. (Nasdaq: CECO) has upsized its credit facility to $400 million, a significant increase from the existing $246 million aggregate capacity. This expanded senior secured revolving credit facility comes with a five-year term and an option to increase by an additional $125 million. The move is aimed at strengthening CECO's financial resources to pursue both organic and inorganic growth opportunities in global markets.

Peter Johansson, CECO's Chief Financial and Strategy Officer, highlighted that this expansion provides greater financial agility and reinforces the company's commitment to executing growth plans effectively. The credit facility involves several financial institutions, with Bank of America, N.A. serving as the Administrative Agent, and BofA Securities, Inc. and TD Securities as Joint Lead Arrangers.

CECO Environmental Corp. (Nasdaq: CECO) ha aumentato la propria linea di credito a 400 milioni di dollari, un incremento significativo rispetto alla capacità aggregata esistente di 246 milioni di dollari. Questa linea di credito senior garantita e rinnovabile è dotata di un termine di cinque anni e di un'opzione per un ulteriore aumento di 125 milioni di dollari. L'operazione mira a rafforzare le risorse finanziarie di CECO per perseguire opportunità di crescita sia organica che inorganica nei mercati globali.

Peter Johansson, Chief Financial and Strategy Officer di CECO, ha sottolineato che questa espansione offre una maggiore agilità finanziaria e rafforza l'impegno dell'azienda nell'attuazione efficace dei piani di crescita. La linea di credito coinvolge diverse istituzioni finanziarie, con Bank of America, N.A. che funge da Agente Amministrativo, e BofA Securities, Inc. e TD Securities come Joint Lead Arrangers.

CECO Environmental Corp. (Nasdaq: CECO) ha aumentado su línea de crédito a 400 millones de dólares, un incremento significativo desde la capacidad agregada existente de 246 millones de dólares. Esta línea de crédito revolving senior asegurada incluye un plazo de cinco años y una opción para aumentar en 125 millones de dólares adicionales. Esta medida tiene como objetivo fortalecer los recursos financieros de CECO para perseguir oportunidades de crecimiento tanto orgánico como inorgánico en los mercados globales.

Peter Johansson, Director Financiero y de Estrategia de CECO, destacó que esta expansión proporciona mayor agilidad financiera y refuerza el compromiso de la empresa de ejecutar eficazmente sus planes de crecimiento. La línea de crédito involucra a varias instituciones financieras, con Bank of America, N.A. como Agente Administrativo, y BofA Securities, Inc. y TD Securities como Coordinadores Principales Conjuntos.

CECO Environmental Corp. (Nasdaq: CECO)는 신용 한도를 4억 달러로 증가시켰습니다, 이는 기존 2억 4천 6백만 달러의 총 용량에 비해 상당한 증가입니다. 이 확장된 선순위 담보 회전 신용 시설은 5년 기간과 추가 1억 2천 5백만 달러 증가 옵션을 제공합니다. 이 조치는 CECO가 글로벌 시장에서 유기적 및 비유기적 성장 기회를 추구하기 위해 재정 자원을 강화하는 데 목표를 두고 있습니다.

CECO의 최고 재무 및 전략 책임자 피터 요한손은 이번 확장이 더 큰 재정적 민첩성을 제공하고 회사의 성장 계획을 효과적으로 실행하기 위한 기여를 강화한다고 강조했습니다. 이 신용 시설은 여러 금융 기관과 관련되어 있으며, 뱅크 오브 아메리카가 행정 에이전트로, BofA 증권 및 TD 증권이 공동 주관사로 참여하고 있습니다.

CECO Environmental Corp. (Nasdaq: CECO) a augmenté sa ligne de crédit à 400 millions de dollars, une augmentation significative par rapport à la capacité globale existante de 246 millions de dollars. Cette ligne de crédit renouvelable senior sécurisée comporte une durée de cinq ans ainsi qu'une option d'augmentation de 125 millions de dollars supplémentaires. Cette décision vise à renforcer les ressources financières de CECO pour saisir des opportunités de croissance organique et inorganique sur les marchés mondiaux.

Peter Johansson, directeur financier et stratégique de CECO, a souligné que cette expansion offre une plus grande agilité financière et renforce l'engagement de l'entreprise à exécuter efficacement ses plans de croissance. La ligne de crédit implique plusieurs institutions financières, avec Bank of America, N.A. agissant en tant qu'Agent Administratif et BofA Securities, Inc. et TD Securities en tant qu'Arrangeurs Principaux Conjoints.

CECO Environmental Corp. (Nasdaq: CECO) hat seine Kreditlinie auf 400 Millionen Dollar erhöht, ein erheblicher Anstieg im Vergleich zu der bestehenden Gesamtkapazität von 246 Millionen Dollar. Diese erweiterte, senior gesicherte revolvierende Kreditlinie hat eine Laufzeit von fünf Jahren und eine Option zur Erhöhung um zusätzlich 125 Millionen Dollar. Dieser Schritt zielt darauf ab, die finanziellen Ressourcen von CECO zu stärken, um sowohl organische als auch anorganische Wachstumschancen auf den globalen Märkten zu verfolgen.

Peter Johansson, Chief Financial and Strategy Officer von CECO, hob hervor, dass diese Expansion eine größere finanzielle Flexibilität bietet und das Engagement des Unternehmens zur effektiven Umsetzung seiner Wachstumspläne verstärkt. Die Kreditlinie umfasst mehrere Finanzinstitute, wobei die Bank of America, N.A. als Verwaltungsagentur fungiert und BofA Securities, Inc. sowie TD Securities als gemeinsame Hauptarrangeure tätig sind.

Positive
  • Increased credit facility from $246 million to $400 million
  • Option to further increase the facility by $125 million
  • Five-year term providing long-term financial flexibility
  • Enhanced ability to fund potential growth opportunities
  • Support from multiple major financial institutions
Negative
  • None.

Insights

CECO Environmental's upsizing of its credit facility to $400 million is a significant financial move that strengthens the company's position for growth. This 62.6% increase from the previous $246 million capacity provides substantial additional liquidity and financial flexibility. The five-year term and option to further increase by $125 million demonstrate lender confidence and give CECO a long runway for strategic initiatives.

This expanded facility is particularly noteworthy for a company with a market cap of about $954 million. It provides CECO with a war chest that's over 40% of its market value, positioning it strongly for potential acquisitions, R&D investments, or market expansion. The involvement of major financial institutions as arrangers and agents adds credibility to this deal.

For investors, this move signals CECO's ambitions for accelerated growth and its ability to secure favorable terms from lenders. However, it's important to monitor how effectively the company deploys this capital to generate returns that outweigh the potential increase in interest expenses.

The upsizing of CECO Environmental's credit facility is a strategic move that aligns with broader industry trends in the environmental and industrial solutions sector. With increasing global focus on sustainability and environmental protection, companies like CECO are positioning themselves to capitalize on growing market opportunities.

This expanded financial capacity could allow CECO to:

  • Pursue strategic acquisitions in high-growth segments
  • Invest in innovative technologies to stay ahead of environmental regulations
  • Expand its global footprint, particularly in emerging markets with increasing environmental concerns

The timing of this move is significant, as it comes amid rising interest rates and economic uncertainties. CECO's ability to secure this expanded facility suggests strong lender confidence in its business model and growth prospects. For investors, this could indicate potential for market share gains and revenue growth in the coming years, provided CECO executes its strategy effectively.

DALLAS, Oct. 15, 2024 (GLOBE NEWSWIRE) -- CECO Environmental Corp. (Nasdaq: CECO), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, has announced a significant upsize in the form of an amendment and restatement of its credit facility, increasing it to a $400 million senior secured revolving credit facility. This expansion from the existing $246 million aggregate capacity underscores CECO's strategic commitment to strengthening its financial resources in pursuit of both organic and inorganic growth.

The expanded credit facility comes with a five-year term and an option to increase the facility by $125 million. This move enables CECO with additional resources to efficiently fund potential opportunities and expand its footprint in global markets.

Peter Johansson, CECO’s Chief Financial and Strategy Officer, emphasized the strategic importance of this expanded credit facility, noting, "This move not only provides us with greater financial agility but also reinforces our commitment to executing our growth plans effectively. With the backing of our committed financial partners, we are well-equipped to adapt to the evolving industry landscape and seize emerging opportunities."

Bank of America, N.A. is the Administrative Agent; BofA Securities, Inc. and TD Securities are the Joint Lead Arrangers, and The Toronto-Dominion Bank, New York Branch, Citibank, N.A., Fifth Third Bank, N.A. and JPMorgan Chase Bank, N.A. are Co-Syndication Agents. 

ABOUT CECO ENVIRONMENTAL
CECO Environmental is a leading environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water and energy transition markets across the global through its key business segments: Engineered Systems and Industrial Process Solutions. Providing innovative technology and application expertise, CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. In regions around the world, CECO works to improve air quality, optimize the energy value chain, and provide customer solutions for applications including power generation, petrochemical processing, general industrial, refining, midstream oil and gas, electric vehicle production, poly silicon fabrication, battery recycling, beverage can, and water/wastewater treatment along with a wide range of other applications. CECO is listed on Nasdaq under the ticker symbol "CECO." Incorporated in 1966, CECO’s global headquarters is in Dallas, Texas. For more information, please visit www.cecoenviro.com.

Company Contact:
Peter Johansson
Chief Financial and Strategy Officer
888-990-6670
investor.relations@onececo.com

Investor Relations Contact:
Steven Hooser and Jean Marie Young
Three Part Advisors, LLC
214-872-2710
investor.relations@onececo.com


FAQ

What is the new credit facility amount for CECO Environmental (CECO)?

CECO Environmental (CECO) has upsized its credit facility to $400 million, an increase from the previous $246 million aggregate capacity.

How long is the term of CECO's new credit facility?

The new credit facility for CECO Environmental has a five-year term.

Can CECO Environmental further increase its new credit facility?

Yes, CECO Environmental has the option to increase the $400 million facility by an additional $125 million.

Who is the Administrative Agent for CECO's new credit facility?

Bank of America, N.A. is serving as the Administrative Agent for CECO Environmental's new credit facility.

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