Scotts Miracle-Gro completes new $1.7 billion credit facility
Scotts Miracle-Gro, the industry’s largest supplier of lawn and garden products, has entered into a new $1.7 billion secured revolving credit facility, scheduled to mature in 2016. This replaces its existing $2.2 billion facility, which was set to expire in February 2012.
The Marysville, Ohio company said the transaction completes an overhaul of its capital structure which successfully staggered the maturities and sources of its borrowings. Over the past 18 months, Scotts Miracle-Gro has had two bond offerings of $200 million apiece which have maturities in 2020 and 2018 respectively.
"We are pleased to have now completed the process of replacing our previous credit facility on terms we believe are favorable and in a manner that reduces risk by diversifying both our sources of financing and maturity schedule," said Dave Evans, chief financial officer. "The financing structure is aligned with our business strategy and capital structure strategy, giving us the ability to properly invest in our business while also continuing to return cash to shareholders."
JP Morgan Chase Bank, as administrative agent, and Bank of America Merrill Lynch, as syndication agent, led a syndicate of 24 other lending banks.
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Recovery settles over cement industry
Sluggish demand for cement from housing construction dented the supply-demand matrix of the cement industry in the last several years, according to a report from Research and Markets. Now it’s time to recover.
According to the report "US Cement Industry Analysis," the cement industry in the US is currently in its recovery phase and striving hard to diminish the after effects of the economic slowdown. New housing starts and commercial construction activities are now picking pace and showing hopes to cement demand retrievals, according to the study. Recuperating infrastructure spending along with growing domestic demand from almost all the prominent industry verticals will enable the apparent cement consumption to grow at a CAGR of around 8.5% during 2011-2015.
The economy is recuperating from recession and the real GDP grew by 2.6% in 2010 after declining to 2.5% in 2009. The recovering economy along with balancing cement prices will kick start cement market recovery in near future and will help it to accelerate further in the coming years.
Further, at the regional front, West South Central (including mainly Louisiana, Oklahoma, Northern & Southern Texas) and South Atlantic (with states including Delaware, Washington DC, Florida, Georgia) are leading the country in terms of cement production as well as consumption.
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California carpet recycling fee kicks in
A new state law that requires carpet manufacturers to add five cents to every square yard of carpeting sold or shipped into California went into effect on July 1. The purpose of the new fee is to incentivize carpet recycling and encourage the production of products made from recycled carpets.
Discarded carpet is one of the 10 most prevalent waste materials in California landfills, according to state officials. Most carpet is made from nylon and other polymers derived from virgin oil, and can therefore be recycled into numerous products including carpet backing and backing components, carpet fiber, carpet underlayment, plastics and engineered materials, and erosion control products. Several carpet recycling facilities currently operate in California, offering jobs, and producing products and feedstock for products made from recycled carpet.
The program was created by the state legislature last year and will be administered by Carpet America Recovery Effort (CARE), a not-for-profit organization formed as a public/private partnership between government entities, businesses, and members of the carpet industry.
People are going to be less
People are going to be less likely to just dump their old carpets into skip bins given the implementation of this law definitely. But how helpful is that in helping the situation really?