Refinancing and Improved Credit Ratings
The company refinanced both its senior notes and revolving credit facility, extending maturity dates by 5 years and strengthening its balance sheet. This led to upgraded ratings on the new senior secured notes from Moody's, S&P Global, and Fitch Ratings.
Record High Backlog and New Equipment Orders
New equipment orders in the industrial equipment business were very strong, with bookings and backlogs at record high levels. The backlog increased by 28% since year-end, driven by significant orders such as a $47 million order for induction slab heating equipment.
Strong Free Cash Flow Expectations
The company expects strong free cash flow in the fourth quarter, ranging between $45 million to $55 million, which would result in a significant reduction of debt by $35 million to $45 million quarter-over-quarter.