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Worthington boasts low leverage, high liquidity after Q1 debt paydown
By Devika Patel
Knoxville, Tenn., Sept. 29 – Worthington Industries Inc. management considers the company well-positioned financially after paying off some notes due in 2026 and extending the maturity date of its revolver last quarter.
The company’s net leverage ratio is below 0.5x and the balance sheet has over $700 million of liquidity.
“We continue to operate with extremely low leverage and our net debt to trailing EBITDA leverage ratio remains under 0.5x,” vice president and chief financial officer Joseph B. Hayek said on the company’s first quarter ended Aug. 31 earnings conference call on Thursday.
“We believe that we’re well positioned for the future with ample liquidity, ending [the first quarter] with $201 million in cash and $500 million in availability on our revolving credit facility, which was recently amended to extend the maturity to September of 2028,” he said.
On Sept. 27, the company amended and restated its $500 million five-year revolver with PNC Bank, NA as administrative agent, extending the maturity date to Sept. 27, 2028 from Aug. 20, 2026.
Prior to that, on July 28, the company redeemed its 2026 notes in full.
“We took advantage of our strong cash balance using $244 million to pay off our 2026 bonds,” Hayek said.
“The debt was called at par,” he said.
The company ended the first quarter with $201.01 million of cash, compared to $454,946,000 of cash as of May 31.
Long-term debt was $298,083,000 as of Aug. 31, compared to $689,718,000 as of May 31.
Trailing 12 months adjusted EBITDA was $539 million as of Sept. 28.
The metal processing company is based in Columbus, Ohio.
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