PHILADELPHIA, Nov. 7, 2023
/PRNewswire/ --
FMC Corporation (NYSE: FMC) today finalized an expected
amendment to its existing revolving credit agreement. The
amendment raises the maximum leverage ratio covenant to 6.5 times
immediately through June 30, 2024,
after which the maximum leverage ratio will step down in increments
to 3.75 times at September 30, 2025,
and remain at that level thereafter. The interest coverage ratio
covenant was similarly adjusted over this time period.
"We appreciate the unanimous support of our bank group and their
recognition of the need for temporary covenant relief in light of
the unprecedented downturn in the global crop protection market,"
said Andrew Sandifer, FMC executive
vice president and chief financial officer. "With today's
amendment, we now have ample headroom and duration that is well
beyond what we believe will be required as we navigate the current
challenges to free cash flow. We expect strong cash generation in
2024, which will be prioritized to paying down debt and delivering
the dividend to shareholders."
Additional details regarding the amendment are provided in the
Form 8-K filed today. The company will provide further details on
its financial outlook at its Investor Day on November 16.
About FMC
FMC Corporation is a global agricultural sciences company
dedicated to helping growers produce food,
feed, fiber and fuel for an expanding world population
while adapting to a changing environment. FMC's innovative
crop protection solutions – including biologicals, crop nutrition,
digital and precision agriculture – enable growers, crop advisers
and turf and pest management professionals to address their
toughest challenges economically while protecting the environment.
With approximately 6,600 employees at more than 100 sites
worldwide, FMC is committed to discovering new herbicide,
insecticide and fungicide active ingredients, product formulations
and pioneering technologies that are consistently better for the
planet. Visit fmc.com to learn more and follow us
on LinkedIn®.
Statement under the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995: FMC and its
representatives may from time to time make written or oral
statements that are "forward-looking" and provide other than
historical information, including statements contained in this
press release, in FMC's other filings with the SEC, and in reports
or letters to FMC stockholders.
In some cases, FMC has identified these forward-looking
statements by such words or phrases as "will likely result," "is
confident that," "expect," "expects," "should," "could," "may,"
"will continue to," "believe," "believes," "anticipates,"
"predicts," "forecasts," "estimates," "projects," "potential,"
"intends" or similar expressions identifying "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, including the negative of those words or
phrases. Such forward-looking statements are based on our current
views and assumptions regarding future events, future business
conditions and the outlook for the company based on currently
available information. The forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any results, levels
of activity, performance or achievements expressed or implied by
any forward-looking statement. These statements are qualified by
reference to the risk factors included in Part I, Item 1A of our
Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"), the
section captioned "Forward-Looking Information" in Part II of the
2022 Form 10-K and to similar risk factors and cautionary
statements in all other reports and forms filed with the Securities
and Exchange Commission ("SEC"). Moreover, investors are cautioned
to interpret many of these factors as being impacted as a result of
the residual adverse impacts of COVID and governmental, business,
and societal responses to COVID. We wish to caution readers
not to place undue reliance on any such forward-looking statements,
which speak only as of the date made. Forward-looking
statements are qualified in their entirety by the above cautionary
statement.
We specifically decline to undertake any obligation, and
specifically disclaims any duty, to publicly update or revise any
forward-looking statements that have been made to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events, except as may be
required by law.
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SOURCE FMC Corporation