Thermon Completes Debt Refinancing, Estimating Annual Cash Interest Expense Savings of $4 Million

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AUSTIN, TX / ACCESSWIRE / September 30, 2021 / Thermon Group Holdings, Inc. (NYSE: THR) (“Thermon”) announced today that it has entered into an amended and reformulated loan agreement (the “Loan Agreement”) with JPMorgan Chase Bank, NA and certain other lenders. Under the facility, Thermon’s existing $ 140 million Term Loan B and the Revolving Credit Facility were enhanced by a US Senior Secured Loan A of $ 80 million, a Canadian Senior Secured Term Loan A of $ 76 million, and a Replaced $ 100 million revolving credit line. The proceeds of the refinancing were used to repay Thermon’s existing revolver and Term Loan B.

“We are pleased to announce this refinancing and estimated annual savings of $ 4 million in interest costs while maintaining the strength of our balance sheet and the flexibility to continue investing in the growth of our business,” said Kevin Fox, Thermon’s senior vice president and chief financial officer. “We are grateful for the relationship with our banking partners in completing this new facility and believe it will help us achieve our goal of doubling our business over the next five years by investing in diversification, market development and technology-enabled maintenance.”

The loan agreement was signed by JPMorgan Chase Bank, NA and BMO Capital Markets Corp. arranged. The price of the Revolver and US Loan A is currently valued at Adjusted LIBOR plus 162.5 basis points and Canadian Loan A is currently valued at CDOR plus 162.5 basis points. The new facilities are subject to a consolidated leverage ratio covenant, which may not exceed 3.75: 1 in the first four fiscal quarters after closing and then decrease to 3.50: 1, and they also include work leave. Additional information regarding Thermon’s agreement will be available on Form 8-K filed with the Securities and Exchange Commission on September 30, 2021. This information is also available at ir.thermon.com/sec-filings.

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About Thermon

Through its global network, Thermon offers safe, reliable and business-critical solutions for industrial process heating. Thermon specializes in providing complete flow control, process heating, temperature maintenance, freeze protection and environmental monitoring solutions. Thermon is headquartered in Austin, Texas. More information is available at www.thermon.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements within the meaning of US securities laws. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements about expected savings and business growth. As used herein, the words “anticipate”, “assume”, “believe”, “budget”, “continue”, “consider”, “could”, “should”, “estimate”, “expect”, “intend”, “may” “,” plan, “” possible, “” potentially, “” predict, “” project, “” will, “” would, “” future “and similar terms and expressions are used to identify forward-looking statements in this publication. Forward-looking statements reflect our current expectations about future events, results, or results. These expectations may or may not be fulfilled. Some of these expectations may be based on assumptions, data, or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control and which could result in our expectations not being met or otherwise materially affecting our financial, earnings and cash flows.

Actual events, results and results could differ materially from our expectations due to a variety of factors. While it is not possible to identify all of these factors, they include, among others, (i) the novel coronavirus strain (COVID-19) outbreak; (ii) general economic conditions and cyclicality in the markets we serve; (iii) future growth in capital investments in energy, chemical processing and power generation; (iv) our ability to operate successfully overseas; (v) our ability to deliver existing orders within our backlog; (vi) our ability to offer and win new business; (vii) the imposition of certain operational and financial restrictions contained in our debt agreements; (viii) tax liabilities and changes in tax policy; (ix) our ability to successfully develop and improve our products and successfully implement new technologies; (x) competition from various other sources offering customers similar heat tracing and process heating products and services or alternative technologies; (xi) our revenue mix; (xii) our ability to grow through strategic acquisitions; (xiii) changes in relevant exchange rates; (xiv) impairment of goodwill and other intangible assets; (xv) our ability to attract and retain skilled management and employees, particularly in our overseas markets; (xvi) our ability to protect our trade secrets; (xvii) our ability to protect our intellectual property; (xiii) our ability to protect data and thwart potential cyberattacks; (xix) a material malfunction in one of our manufacturing facilities; (xx) our reliance on subcontractors and third parties; (xxi) our ability to benefit from fixed price contracts; (xxii) the credit risk associated with our lending to customers; (xxiii) our ability to deliver on our operational initiatives; (xxiv) unforeseen difficulties in expanding, relocating or merging existing facilities; (xxv) potential liability in connection with our products and the delivery of products and services; (xxvi) our ability to comply with foreign anti-corruption laws; (xxvii) export control regulations or sanctions; (xxviii) changes in government administrative policy; (xxix) geopolitical instability in Russia and Ukraine and related US government sanctions; (xxx) environmental, health and safety laws and regulations and environmental liability; and (xxxi) climate change and related greenhouse gas regulation and (xxxii) the factors listed under Item 1A “Risk Factors” which are included in our Annual Report on Form 10-K for the year ended March 31, 2021 filed with the Securities , and Exchange Commission (the “SEC”) on May 27, 2021 and any subsequent quarterly reports on Form 10-Q, current reports on Form 8-K, or other filings that we have filed or will file with the SEC. Any of these factors or a combination of these factors could materially affect our future results of operations and could affect whether the forward-looking statements contained in this press release ultimately prove to be correct.

Our forward-looking statements are not guarantees of future performance and actual results and future performance could differ materially from those suggested in the forward-looking statements. We do not intend to update these statements unless we are required to do so under applicable securities laws.

CONTACT:

Kevin Fox
(512) 690-0600
Investor.Relations@thermon.com

SOURCE: Thermon Group Holdings, Inc.

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