GrafTech International(EAF) - 2024 Q4 - Annual Report

Liquidity and Cash Flow - As of December 31, 2024, the company had liquidity of $464.2 million, consisting of $108.0 million available under the 2018 Revolving Credit Facility, $100.0 million under the Initial First Lien Term Loan Facility, and cash and cash equivalents of $256.2 million[250]. - The company reported a net cash used in operating activities of $40.1 million for 2024, a significant decrease from a cash source of $76.6 million in 2023, primarily due to reduced cash provided by working capital[260]. - Cash flow used in investing activities was $34.2 million for 2024, compared to $53.8 million in 2023, driven by reduced capital expenditures[261]. - Net cash provided by financing activities was $155.7 million in 2024, an increase from $18.7 million in 2023, mainly due to the issuance of $175.0 million of First Lien Term Loans[262]. - The company experienced a decrease in cash flow provided by inventories and accounts receivable, primarily due to reduced sales in the fourth quarter of 2024 compared to the same period in 2023[260]. Debt and Financing - The company had gross long-term debt of $1.1 billion as of December 31, 2024, up from $950.0 million in 2023[250]. - The company completed financing transactions to extend the maturities on its outstanding debt during the fourth quarter of 2024[253]. - The company issued New 4.625% Notes and New 9.875% Notes in aggregate principal amounts of $498.2 million and $446.2 million, respectively, on December 23, 2024[265]. - The Initial First Lien Term Loans amount to $175 million, with an additional $100 million available through Delayed Draw Commitments until July 23, 2026[286]. - The First Lien Term Loans bear interest at a rate equal to Term SOFR plus 6.00% per annum or ABR plus 5.00% per annum, with a 2.00% floor[288]. - Following the Exchange Offer, approximately $1.8 million of Existing 4.625% Notes and $3.8 million of Existing 9.875% Notes remain outstanding[279][285]. - The Existing 4.625% Notes were issued at an aggregate principal amount of $500 million, with proceeds used to partially repay borrowings under the 2018 Term Loan Facility[275]. - The First Lien Term Loans mature on December 23, 2029, and are secured by perfected first-priority security interests in the collateral[287]. - GrafTech Global must offer to repurchase the New 9.875% Notes if specific changes in control occur or if certain assets are sold[281]. - The New Notes Indentures contain covenants that limit the ability to incur additional indebtedness or engage in certain transactions[271]. - The total contractual obligations as of December 31, 2024, amounted to $1,559.864 million, with long-term debt accounting for $1,125 million[297]. - The Company had no outstanding term loans under the 2018 Term Loan Facility as of December 31, 2024[294]. Dividend and Stock Repurchase - The company suspended its quarterly cash dividend of $0.01 per share on August 2, 2023, with no assurance of resuming future dividend payments[255]. - The company authorized a stock repurchase program totaling $250.0 million, with $99.0 million remaining under the authorization as of December 31, 2024[254]. Compliance and Covenants - As of December 31, 2024, GrafTech Global was in compliance with all debt covenants in the New Notes Indentures, maintaining a pro forma consolidated total net leverage ratio of no greater than 2.50 to 1.00[271]. - As of December 31, 2024, the availability under the 2018 Revolving Credit Facility was $108.0 million, down from $112.4 million in 2023[294]. - The 2018 Revolving Credit Facility matures on November 30, 2028, with a financial covenant requiring a Senior Secured First Lien Net Leverage Ratio of no more than 4.00 to 1.00[296]. - The Company must not have more than $100 million of unrestricted cash and cash equivalents after borrowing under the 2018 Revolving Credit Facility[293]. - The Company has complied with all debt covenants as of December 31, 2024[296]. Tax and Deferred Assets - As of December 31, 2024, the Company had deferred tax assets (DTAs) of $52.4 million in the U.S., with a valuation allowance of $19.3 million against certain DTAs[303][304]. - The Company is required to make estimated interest payments on its Existing 9.875% Notes and Existing 4.625% Notes through December 15, 2028, totaling $434.864 million[297]. Other Financial Details - The 2018 Revolving Credit Facility includes a commitment fee of 0.25% per annum on undrawn commitments[295]. - As of December 31, 2024, there were $7.4 million of letters of credit drawn against the 2018 Revolving Credit Facility[294].