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Apergy pays $25 million of term loan in bid to cut leverage to 1.5x
By Devika Patel
Knoxville, Tenn., May 1 – Apergy Corp. used available cash to repay $25 million of term loan debt in the last quarter as part of its plan to reduce its leverage ratio to its target of 1.5x.
Since the company’s spinoff on May 9, 2018, Apergy has repaid $70 million of term loan debt.
“In line with our capital allocation strategy, we continued to make good progress on deleveraging our balance sheet and repaid $25 million of term loan debt,” president and chief executive officer Sivasankaran Somasundaram said on the company’s first quarter ended March 31 earnings conference call on Wednesday.
“We repaid another $25 million on our term loan, consistent with our commitment to our capital allocation priorities, which include funding our organic capex needs as well as reducing our leverage through earnings growth and debt reduction,” senior vice president and chief financial officer Jay A. Nutt said on the call.
“Since our spinoff, we have repaid $70 million of debt and we are well on our way toward achieving our target leverage of 1.5x debt to EBITDA,” Somasundaram said.
Adjusted EBITDA was $72.5 million in the first quarter of 2019, compared to $63.8 million in the first quarter of 2018 and $77.8 million in the fourth quarter of 2018.
Cash and cash equivalents were $28,354,000 as of March 31, 2019, compared to $41,832,000 as of Dec. 31, 2018.
Long-term debt was $637,647,000 as of March 31, 2019, compared to $666,108,000 as of Dec. 31, 2018.
At March 31, Apergy’s total leverage ratio was 2.1x and its available liquidity was $203 million.
Apergy is a The Woodlands, Tex.-based provider of highly engineered technologies that help companies drill for and produce oil and gas efficiently and safely.
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