Ecovyst Inc. Enhances Financial Flexibility Through ABL Facility Amendments

Ecovyst Inc., a prominent player in advanced materials and specialty catalysts, has successfully amended its previously established Asset-Based Loan (ABL) Facility. This strategic move aims to bolster the company’s financial agility amidst an evolving market landscape. The amended credit agreement was announced on April 11, 2025, and is set to sustain a limit of $100 million, which has been extended by three years, now maturing in April 2030.

The newly modified terms of the ABL Facility will be tied to a forward-looking term rate, specifically the secured overnight financing rate, better known as Term SOFR, or alternatively the base rate with an accompanying margin that fluctuates between 1.25% - 1.75% or 0.25% - 0.75% per annum, respectively. This tactical adjustment is envisioned to bolster the firm’s financial resilience, enabling it to navigate the complexities of the current economic environment more effectively.

Mike Feehan, Chief Financial Officer of Ecovyst, emphasized the importance of this amendment, stating, "We believe that amending and extending our ABL credit agreement in the current market environment will enhance our overall financial flexibility." This modification comes in the wake of their January 2025 initiative to amend another significant financial instrument—the Term Loan Facility—wherein the interest rate spread applicable was reduced by 25 basis points, alongside transitioning to Term SOFR plus 2.00% per annum.

Ecovyst is recognized as a leading integrated provider of innovative materials and services, including virgin sulfuric acid and sulfuric acid regeneration services. With its strategically located network of manufacturing facilities, Ecovyst is dedicated to supporting customers globally while aiming to enhance environmental sustainability.

In its specialty business, Ecoservices, Ecovyst offers crucial sulfuric acid recycling primarily for the North American refining industry, contributing to the production of alkylate, alongside rendering high-quality virgin sulfuric acid for diverse industrial and mining applications. Moreover, Ecoservices extends its capabilities to include chemical waste handling and treatment services.

Another division, Advanced Materials & Catalysts, focuses on the production of finished silica catalysts, catalyst supports, and functionalized silicas that meet the rising demands for high-performance plastics and sustainable chemistry solutions. Additionally, through its joint venture, Zeolyst, Ecovyst innovates composite zeolites pivotal for catalysts used in sustainable fuel generation and reducing nitrogen oxides emissions from diesel engines.

In discussions surrounding the amendments to the ABL Facility, the focus on financial flexibility is paramount. By mitigating credit risk and reducing borrowing costs, the company aims to enhance liquidity, thereby allowing for strategic investments and the capacity to adapt to market dynamics that may arise in the coming years.

It is essential to note that some details within this disclosure include forward-looking statements, which encompass expectations and projections that can be influenced by unforeseen factors such as fluctuating economic conditions and industry dynamics. Thus, while the amendments are designed to fortify Ecovyst’s financial structure, actual outcomes may vary significantly based on external and operational influences.

For comprehensive details, stakeholders can visit Ecovyst’s official website or connect with their investor relations team. As Ecovyst continues its trajectory of innovation and sustainability within the chemical sector, it remains committed to leading initiatives that reflect its core values and strategic objectives for future growth.

About Ecovyst

Ecovyst Inc. stands as a pioneering force in the realm of advanced materials and specialty catalysts. Their unwavering commitment to sustainability and innovation places them at the forefront of the industry, instrumental in shaping a greener future through their diverse range of environmentally impactful products and solutions.