– Amended Credit Facilities Provide Financial Flexibility to Support Corporate Objectives –
PEARL RIVER, NY – November 30, 2018 Hudson Technologies, Inc. (NASDAQ: HDSN) today announced that it has entered into definitive amendments to its term loan and revolving loan credit facilities. These amendments have been implemented pursuant to a Waiver and Third Amendment to its Term Loan Credit and Security Agreement (the “Third Amendment”) as well as a Second Amendment to its Amended and Restated Revolving Credit and Security Agreement (the “Second Revolver Amendment”).
Kevin Zugibe, Chairman and CEO of Hudson Technologies, stated, “We are pleased to have successfully amended our credit facilities and appreciate the support of our lending partners as well as the patience of our shareholders as we finalized these agreements. In the first nine months of 2018 we drove strong cash flow from operations of $35 million and reduced our debt by $37 million. These definitive amendments with our lenders provide amended covenants that give us the financial flexibility and liquidity to drive our operating performance and support our long-term corporate objectives as we look toward the 2019 selling season and beyond.”
The Third Amendment superseded interim waivers and amended the Term Loan Credit and Security Agreement dated October 10, 2017 to reset the maximum total leverage ratio financial covenant through December 31, 2019 with no further amendment fee.
The Second Revolver Amendment amends the Amended and Restated Revolving Credit and Security Agreement dated October 10, 2017 to replace the existing fixed charge coverage ratio through June 30, 2019 with an EBITDA covenant. The minimum fixed charge coverage ratio of 1.00:1.00 will recommence with the quarter ending September 30, 2019. The Second Revolver Amendment also increases the applicable interest rate margin to 3% for Eurodollar Rate Loans and 2% for Domestic Rate Loans through September 30, 2019, with applicable margins thereafter of between 2.5% and 3% for Eurodollar Rate Loans and 1.5% and 2% for Domestic Rate Loans based on the applicable fixed charge coverage ratio.
Additional details regarding the Third Amendment and the Second Revolver Amendment can be found in the Form 8-K to be filed with the Securities and Exchange Commission.
Timing of 10-Q Filing
Given the completion of the credit facility amendments described herein, the Company expects to file its Form 10-Q for the period ended June 30, 2018, together with its Form 10-Q for the period ended September 30, 2018 no later than Monday December 3, 2018. Hudson anticipates that it will host a conference call to discuss its 2018 third quarter and nine month results after the market close on Wednesday, December 5, 2018. Call details will be announced shortly.