EnPro pays $133.7 million term loan A-1; no further debt cuts planned

By Devika Patel

Knoxville, Tenn., Aug. 8 – EnPro Industries Inc. brought its net leverage ratio down to 1.5x at the end of the last quarter, then subsequently paid down $133.7 million of term debt that was due September 2024, leaving the company with term debt that matures in 2026.

The company has no further plans to reduce debt, instead it plans to focus its capital on investing in growth.

“We ended the quarter with a net leverage ratio of 1.5x,” executive vice president and chief financial officer Milton Childress said on the company’s second quarter ended June 30 earnings conference call on Tuesday.

“Subsequent to the end of the second quarter, in late July, we repaid our term loan A-1 of $133.7 million with available cash.

“Taking this into account with pro forma cash and short-term investments exceeding $275 million and nearly full availability under our $400 million revolving credit facility, we have ample financial flexibility to execute on our long-term strategic growth initiatives.

“Our foundational portfolio has generated significant free cash flow,” Childress said.

“Subsequent to the end of the quarter, we repaid our term loan A-1 that had a maturity of September of next year of 2024, so we decided to go ahead and pay that down.

“The remaining term debt has a 2026 maturity date and, just for liquidity reasons, we saw no reason to pay that down, so we don't have expectations currently to pay down additional debt.

“We’re more focused on investing, investing for growth,” he said.

EnPro is a Charlotte, N.C.-based manufacturer of highly engineered industrial products.

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