Spartech announces refinancing initiative to boost financial flexibility

USA – Spartech, a producer of engineered thermoplastics and packaging solutions, has announced a refinancing commitment aimed at reducing leverage, providing additional liquidity, and enhancing financial flexibility.

The refinancing commitment is set to improve Spartech’s liquidity by minimising debt service.

In addition, it anticipates providing the company with a new capital commitment of $45 million and financial flexibility.

The commitment will not only aid in enhancing growth but also promote the company’s operations and strengthen relationships within its value chain, instilling a sense of optimism for Spartech’s future.

Notably, Spartech’s existing investors, demonstrating their unwavering confidence in the company, will be executing the initiative with unanimous support.

The commitment strategy will involve the company’s equity and lending stakeholders.

Jim Elliott, Spartech CEO, said, “I’m delighted to announce the refinancing of Spartech and the substantial new money investment in the business by Spartech’s existing lenders.”

“I’m also grateful for the collaborative approach of Spartech’s equity and lender stakeholders in executing this transaction that will greatly strengthen Spartech’s financial position and allow the Company to pursue a broad range of exciting business opportunities.”

For the most demanding markets, Spartech remains committed to providing intelligent and innovative solutions. Spartech’s goal is to make our world a safer, easier, and better place to live, and this refinancing initiative is a testament to its dedication to this mission. 

Spartech to invest in India

In early March 2024, Spartech, LLC, announced its plan to invest $1.8 million in state-of-the-art manufacturing equipment to modernise and increase efficiency at its existing Crawfordsville operation. 

The investment would not only help retain 87 full-time employees at the plant and add 10 new full-time positions but also contribute to the local economy and strengthen the manufacturing sector in Crawfordsville.

They would seek a tax abatement incentive from the City of Crawfordsville as part of the decision-making process.

“Spartech is excited about the opportunities this substantial investment brings, which reflect our commitment to growth, innovation, and improving operational efficiencies,” Jim Elliott, Spartech CEO, said.

“It includes the acquisition of a state-of-the-art piece of equipment which will bolster our production capacity and empower our teams to deliver superior products to our valued customers.”

“Spartech is a valuable member of the diverse manufacturing sector in Crawfordsville, and we are excited about the future opportunities created by this renewed level on investment,” Crawfordsville Mayor Todd Barton said.

 “Their commitment to further strengthening and growing their Crawfordsville operations further solidifies their future in this community.”

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