Covia Successfully Completes Financial Restructuring and Emerges from Chapter 11
December 31 2020 - 1:19PM
Covia today announced that it has successfully completed its
financial restructuring and emerged from Chapter 11. Through the
restructuring, Covia has reduced its long-term debt by
approximately $750 million and its fixed costs, including railcar
obligations, by an additional $300 million.
"Today marks a new beginning for Covia. Through this
reorganization process, we emerge as a stronger company 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. "Many thanks go to our employees, customers, vendors and
lenders, all of whom played important roles in creating a stronger
Covia.”Mr. Navarre added, “Covia’s diversified mineral solutions
and services will continue to be critical inputs in products that
are important parts of everyday life. By emerging as a more
streamlined organization backed by owners with strong financial
resources and expertise in the industrial minerals space, we have
improved our ability to accelerate growth in our higher-margin
industrial segment and be the low-cost provider to our customers.
We are confident that we are emerging from this process positioned
for long-term success.”
Following emergence from the restructuring, the Company’s
strengthened capital structure consists of:
- Approximately $175 million in total liquidity consisting of
$105 million in cash and $70 million of availability under a $135
million asset-based lending facility expected to mature in December
2025 and provided by PNC Bank, N.A.; 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 InformationAdditional information
about Covia’s restructuring is available on the website of the
Company’s claims and noticing agent, Prime Clerk LLC, at
https://cases.primeclerk.com/Covia. The Company
has also established a call center for questions: 877-606-3610 if
calling from within the U.S. or Canada, or 929-955-3452 if calling
from outside the U.S. or Canada.
About CoviaCovia is a leading provider of
diversified mineral solutions to the oil and gas, glass, ceramics,
coatings, metals, foundry, polymers, construction, water
filtration, sports and recreation markets. The Company serves its
Industrial customers through a broad array of high-quality
products, including high-purity silica sand, nepheline syenite,
feldspar, clay, kaolin, resin systems and coated materials,
delivered through its comprehensive distribution network. Covia
offers its Energy customers an unparalleled selection of proppant
solutions, additives, and coated products to enhance well
productivity and to address both surface and down-hole challenges
in all well environments. Covia has built long-standing
relationships with a broad customer base consisting of blue-chip
customers. Underpinning these strengths is an unwavering commitment
to safety and to sustainable development, further enhancing the
value that Covia delivers to all of its stakeholders. For more
information, visit CoviaCorp.com.
Forward Looking StatementsThis communication
contains forward-looking statements. Forward-looking statements
generally may be identified by the use of terms such as "may,"
"will," "expect," "intend," "estimate," "anticipate," "believe,"
"project," "continue" or other similar words. Forward-looking
statements are not historical facts and involve inherent risks and
uncertainties. Several factors may cause actual results to differ
materially from those contained in any forward-looking statement.
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 forward-looking statements,
whether as a result of new information, future events or
otherwise.
Covia contact:Matthew
Schlarb440-214-3284Matthew.Schlarb@coviacorp.com
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