Harsco Corporation Completes Accounts Receivable Securitization to Support Financial Flexibility

Rhea-AI Summary

Harsco Corporation (NYSE: HSC) has successfully closed a $150 million accounts receivable securitization facility with PNC Bank, N.A., expecting to initially utilize $120 million of the facility. This asset monetization is projected to save approximately $2 million in annual interest and reduce the company's leverage under its senior secured credit agreement. The facility has a three-year term and can be funded at Harsco’s discretion in future quarters. Senior VP and CFO Anshooman Aga emphasized the importance of reducing leverage and improving cash flow.

Positive

• Securitization facility of $150 million closed with PNC Bank.
• Initial utilization of approximately $120 million will save $2 million annually in interest.
• Transaction reduces leverage under the existing credit agreement.

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• None.

CAMP HILL, Pa., June 30, 2022 (GLOBE NEWSWIRE) -- Harsco Corporation (NYSE: HSC) today announced that it has closed an accounts receivable securitization facility of $150 million with PNC Bank, N.A. The Company expects to initially utilize approximately $120 million of the facility, with this asset monetization providing annual interest savings of approximately $2 million. This transaction also lowers Harsco’s leverage as defined under its existing senior secured credit agreement. The remaining availability under the facility may be funded at the Company’s discretion in subsequent quarters. The facility has a term of three years.

“We are pleased to have successfully completed a sizable asset securitization with one of our core banks,” said Anshooman Aga, Senior Vice President and Chief Financial Officer. “Reducing leverage and improving cash flow are key financial priorities for Harsco.”

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase 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, PA, the 12,000-employee company operates in more than 30 countries. Harsco’s common stock is a component of the S&P SmallCap 600 Index and the Russell 2000 Index. Additional information can be found at www.harsco.com.

Investor Contact 
David Martin
717.612.5628 
damartin@harsco.com

Media Contact
Jay Cooney
717.730.3683 
jcooney@harsco.com

FAQ

What is the significance of Harsco Corporation's $150 million securitization facility?

The $150 million accounts receivable securitization facility allows Harsco Corporation to improve cash flow and reduce leverage, providing annual interest savings of about $2 million.

How much of the securitization facility will Harsco initially utilize?

Harsco Corporation plans to initially utilize approximately $120 million of the $150 million securitization facility.

What impact does the securitization facility have on Harsco's leverage?

The securitization facility lowers Harsco's leverage as defined under its existing senior secured credit agreement.

Who is the banking partner for Harsco Corporation's securitization facility?

Harsco Corporation has partnered with PNC Bank, N.A. for its $150 million accounts receivable securitization facility.

What is the term of Harsco's accounts receivable securitization facility?

The securitization facility has a term of three years.