#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.

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.

RE&UP debuts at Ecomondo 2025 to showcase circular fashion innovation

RE&UP makes its first appearance at Ecomondo – The Green Technology Expo, Europe’s leading event for ecological transition and circular economy. Specializing in textile-to-textile recycling, RE&UP transforms end-of-life fabrics into Next-Gen recycled cotton fibers and polyester chips, giving new life to materials that would otherwise go to waste.

ICAC announces postponement of the 83rd Plenary Meeting in Tanzania

Due to unforeseen circumstances arising from the recent developments in Tanzania, the ICAC has announced that its upcoming 83rd Plenary Meeting has been postponed. Scheduled for Nov. 17-20 in Mwanza, the delay was recommended by Tanzania, and the decision was made out of an abundance of caution, prioritizing the safety and well-being of all participants.

TEXTILCOLOR AG launches strategic collaboration with Alpex, Majocchi, and Trans-Textil in the field of Pyroshell™ flame protection

TEXTILCOLOR AG, a leading provider of innovative solutions in textile chemistry, today announces the start of a strategic collaboration with Alpex Protection, Majocchi, and Trans-Textil. Starting November 1, 2025, the partners will jointly advance the flame-retardant finishing of textiles using the patented Pyroshell™ technology at production sites in Germany, France, and Italy.