Axalta seeks to lower leverage ratio through EBITDA growth, more cash

By Devika Patel

Knoxville, Tenn., Dec. 14 – Axalta Coating Systems Ltd. sees limited return in paying down its debt, but hopes to lower its leverage ratio through adjusted EBITDA growth and increased cash.

“We remain focused on generating strong free cash flow and seek to maintain a solid balance sheet,” executive vice president and chief financial officer Robert W. Bryant said on the company’s 2018 financial performance outlook conference call on Thursday.

“At current leverage, we would not be opposed to some reduction in the ratio, largely from growth in adjusted EBITDA as well as increased cash for now, given the limited return from paying down our current debt,” Bryant said.

The company’s management expects to generate $430 million to $470 million of free cash flow in 2018.

Adjusted EBITDA is projected to be in the range of $940 million to $980 million.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of coatings systems.

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