Tetra Technologies Announced $190M 6-year Funded Term Loan To Refinance Maturing Debt And A $75M Delayed Draw Term Loan To Provide Capital For The Planned Bromine Processing Project
Portfolio Pulse from Charles Gross
TETRA Technologies, Inc. (TTI) has secured a $265 million credit facility from Silver Point Finance, consisting of a $190 million term loan and a $75 million delayed-draw term loan. The new facility will refinance TETRA's existing $163 million debt and fund its Arkansas bromine processing project. The new loan has a lower interest rate and extends the maturity to January 2030. TETRA's liquidity and expected cash flow are anticipated to cover the project's capital requirements.
January 15, 2024 | 9:43 pm
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TETRA Technologies has refinanced its maturing debt with a more cost-effective $265 million credit facility and secured funding for its bromine processing project, indicating a strong financial position and growth prospects.
The new credit facility for TETRA Technologies is likely to have a positive short-term impact on the stock price. The terms of the new debt are more favorable than the previous loan, with a lower interest rate and extended maturity, which reduces financial risk and interest expenses. Additionally, securing capital for the bromine processing project suggests confidence in the company's growth and may be viewed positively by investors. The company's strong liquidity position further supports the positive outlook.
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