Newport Beach-based American Vanguard Corp. amended a credit facility and guided on an upcoming earnings release in a note Tuesday.
The chemicals maker boosted the ratio of loan-to-EBITDA with a group of lenders led by Bank of the West, giving it room to operate as earnings decline in the short-term. The ratio was reset at 4.25-to-1, returning “to current levels over the next three full, calendar quarters,” American Vanguard said in a statement.
Chairman and CEO Eric Wintemute noted the lenders’ “continued support [and] vote of confidence.” The company is an “essential business” under some federal guidelines: food and agriculture, chemical, and public health, he said.
American Vanguard’s U.S. quarterly results look to be comparable to the year-ago period but “softness in international markets” suggests a 4% decline in net sales companywide and, “depending in part upon the extent of potential non-cash charges, we currently expect that we will be at break-even for the period.”
The company reports first quarter results and will offer full year 2020 guidance on May 11, he said.
American Vanguard (NYSE: AVD) shares had fallen from about $17 in mid-February to $12 in late March over the market’s coronavirus decline; they traded recently up about 2% to $15 and a $454 million market cap.
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