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HOUSTON, July 29, 2019 (GLOBE NEWSWIRE) -- TPC Group today announced that S&P Global Ratings has raised its issuer credit rating on the Company and its exiting 2020 senior notes to ‘B’ from ‘B-’. S&P has also assigned ‘B’ issue-level and ‘4’ recovery ratings to the new $930 million senior secured notes the Company announced it priced in a private offering on July 19, 2019. Proceeds from the new notes will be received Friday, August 2 and will be used to redeem the existing 2020 senior notes, to repay amounts outstanding under our term loan and existing credit facility and to pay transaction expenses.
The stable outlook reflects the view that the Company will continue to generate positive free cash flow on a sustained basis and expects to maintain net debt to adjusted EBITDA well below five times as the Company benefits from additional processing crude C4 (CC4) volumes from new ethylene capacity coming online in the second half of 2019 and beyond, under an improved contract structure.
“The Company’s production facilities are operating at highly reliable and efficient levels, which has allowed us to maintain our position as a dependable service provider to our customers and suppliers. We continue to drive improvements and upgrades in our Crude C4 (CC4) processing system and to further enhance our capabilities to handle the supply growth of CC4 volumes from new world scale ethylene crackers coming online in the second half of 2019 and beyond,” said Ed Dineen, TPC Group Chairman, President and CEO. “Our sustained operating performance demonstrates a clear return on the investments we have made in our infrastructure and operational reliability over the past two years.”
About TPC Group
TPC Group, headquartered in Houston, is a leading producer of value-added products derived from petrochemical raw materials such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast. The Company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. With an operating history of 75 years, TPC Group has manufacturing facilities in the industrial corridor adjacent to the Houston Ship Channel and Port Neches, Texas, and operates a product terminal in Lake Charles, Louisiana.
CONTACT: Andrew Grygiel, Investor Relations
Sara Cronin, Media Relations