Cabot prepays $100 million debt; 2x leverage expected in fiscal 2020

By Devika Patel

Knoxville, Tenn., Nov. 18 – Cabot Microelectronics Corp. prepaid $100 million of debt this year through strong cash flow generation, and management expects the company will have a 2x leverage ratio by the end of fiscal 2020.

“Year to date, we prepaid $100 million of debt and remain on track to reach our goal of 2x net debt to EBITDA by the end of fiscal 2020,” vice president and chief financial officer Scott D. Beamer said on the company’s fourth quarter and year ended Sept. 30 earnings conference call on Monday.

“We’re very pleased with our strong cash flow generation this year,” he said.

The company reported adjusted pro forma EBITDA of $85.3 million for the fourth quarter and adjusted pro forma EBITDA of $345.4 million for the year.

Cash and cash equivalents were $188,495,000 as of Sept. 30, 2019, compared to $352,921,000 as of Sept. 30, 2018.

Long-term debt, net of current portion, was $928,463,000 as of Sept. 30.

Cabot is an Aurora, Ill.-based supplier of chemical mechanical planarization polishing slurries and CMP pads to the semiconductor industry.

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