Matthew Vittorioso's questions to GrafTech International Ltd (EAF) leadership • Q3 2024
Question
Matthew Vittorioso from Jefferies Financial Group Inc. asked about the restrictions on incurring additional first-lien debt under the new financing agreement. He also questioned why the company did not capture a discount on its existing bonds during the transaction, probing management's comfort level with the current debt load.
Answer
CFO Rory O'Donnell confirmed there is a cap on additional first-lien debt. CEO Timothy Flanagan explained that the financing transaction was structured to balance multiple priorities, including securing cost-competitive capital, extending maturities, and maintaining strategic flexibility. Flanagan reiterated that reducing overall leverage over time remains a key objective, which will be achieved through a combination of debt reduction and EBITDA growth as the market recovers.