#Composites

2023-07-13

Successful completion of the refinancing of SGL Carbon

Just two years ago, SGL Carbon's net debt amounted to €287 million with a leverage of 3.1. Today, SGL Carbon reports that it has successfully completed its refinancing with the announcement of the full redemption of the corporate bond. Net debt as of March 31, 2023 has reduced to €174 million with a leverage of 1.0.

SGL Carbon today informed the bondholders that it will redeem the remaining outstanding shares of the Corporate Bond (ISIN: XS1945271952 / maturing in September 2024) for €237.4 million on July 28, 2023 at par plus accrued interest.

To repay the corporate bond, SGL Carbon will use the funds from the successful placement of the €119 million convertible bond in June 2023 and the €75 million term loan facility granted by the Company's core banks in March 2023, as well as existing liquidity.

SGL Carbon has thus created a stable financing structure that will enable it to continue to push ahead with its growth strategy.

The refinancing of SGL Carbon comprised several transactions, including the successful placement of a convertible bond in September 2022 in amount of €102 million (maturity in 2027) with a concurrent repurchase offer to the holders of the convertible bond with an original maturity in September 2023. This convertible bond was repaid in full in March 2023.

Furthermore, in March 2023, the revolving credit facility provided to the Company by six of its core banks was extended in maturity until 2026 and extensively amended. Under the amended facilities agreement, SGL Carbon now has access to a liquidity reserve of €100 million for general corporate purposes and a term loan facility of €75 million, which will be used to refinance the corporate bond. Both credit lines include an ESG component that provides for a margin adjustment for the achievement of certain ESG targets.

A further convertible bond of €119 million, maturing in 2028, was issued in June 2023 and as already outlined, will be used together with the term loan facility and existing liquidity for the early repayment of the secured corporate bond (original maturity in September 2024).

"With the successful completion of the refinancing, we are now ideally positioned to focus on the expansion of our profitable businesses in the coming years," said Dr. Torsten Derr, CEO of SGL Carbon SE. "The successful placement of the two convertible bonds and the extension of the credit facilities demonstrate the confidence of investors and banks in the future prospects of SGL Carbon and its long-term growth strategy," added Thomas Dippold, CFO of the Company.

SGL Carbon decides to restructure its Carbon Fibers business unit

The Board of Management of SGL Carbon SE today decided, with the approval of the Supervisory Board, to restructure the loss-making Carbon Fibers business unit. SGL Carbon will significantly reduce the business activities of Carbon Fibers and focus on a profitable core. Individual solutions are being developed for all Carbon Fibers sites, including the closure of unprofitable sites.

SGL Carbon evaluates strategic options for the carbon fibers and appoints Dr. Denis Hinz as new head of the business unit

SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestment of the Business Unit. In a first step, potential interested parties shall be approached promptly with the general data of the Business Unit to determine their interest in an acquisition. If there is sufficient interest, a structured transaction process will be carried out in a second step.

Two new logistics halls at the SGL sites in Innkreis, Austria

On July 21, 2023, a 500 m² logistics hall was inaugurated at SGL Carbon's Austrian site in Ort im Innkreis, including an adjoining hall of approximately 150 m² for the storage of tools. Prior to this, a similarly sized logistics hall had already been completed at the Ried im Innkreis site in the spring of last year.

SGL Carbon with solid business performance

Despite the increasingly difficult economic environment, SGL Carbon was able to increase sales in H1 2023 from €549.8 million in the previous year to €560.5 million. Adjusted EBITDA (EBITDApre) remained almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected good business performance of the Graphite Solutions business unit and the better-than-expected sales and earnings development of Process Technology and Composite Solutions compensated the drop in demand in Carbon Fibers.

JEC World 2026 reveals the list of finalists for the Innovation Awards

Each year, the JEC Composites Innovation Awards recognize collaborative, innovative, and ambitious projects that illustrate the potential of composite materials. Created in 1998, this benchmark program aims to identify, promote, and reward the most innovative composite solutions worldwide. In 28 years, the JEC Composites Innovation Awards have attracted more than 2,200 participating companies from around the world. A total of 269 companies and 811 associated partners have been recognized for the excellence of their innovations.

MEL Composites and Carrocerías Ayats collaborate on lightweight composite window frames

MEL Composites is proud to announce its ongoing collaboration with Spanish bus and coach manufacturer Carrocerías Ayats, showcasing the benefits of advanced composite technologies and scalable manufacturing processes originally developed for the sporting goods sector. The joint development of lightweight composite window frame covers demonstrates how MEL’s process innovation can be successfully transferred to the transportation industry to meet new regulatory and performance goals.

SHIMA SEIKI returns to ShanghaiTex

Leading flat knitting solutions provider SHIMA SEIKI MFG., LTD. of Wakayama, Japan, together with its Hong Kong and Chinese market subsidiary SHIMA SEIKI (HONG KONG) LTD., will exhibit at the ShanghaiTex 2025 exhibition (Booth No.: Hall N3, Booth A20) held in Shanghai, China this month. This marks the return of SHIMA SEIKI to ShanghaiTex after a 14-year hiatus, its last exhibit at the show having been in 2011.

Fraunhofer CCPE presents the “Monomaterial Design Set” – Innovative solutions for circular product design

Composite materials made from different types of plastic often extend the lifetime of products but make recycling more difficult in the circular economy. That is why Fraunhofer CCPE has developed the “Monomaterial Design Set”. This new approach helps to reduce the variety of plastics used in durable products and offers circular solutions for designers and product developers.

arena introduces renewable LYCRA® EcoMade fiber in its latest swimwear collection

Italian swimwear specialist arena has unveiled a new collection that brings sustainability and performance even closer together. Launched on December 4, the line features swimsuits made from recycled nylon and renewable LYCRA® EcoMade fiber — the first time the bio-based spandex has been used commercially in swimwear.