Orion agreed to the seven-year $650-million term loan in 2021
Orion Engineered Carbons, a global specialty chemicals producer, announced the company has achieved its 2022 emissions targets in the U.S. and will receive a 10 basis point rate reduction in interest payments on its sustainability-linked term loan, saving approximately $650,000.
When Orion agreed to the seven-year $650-million term loan in 2021, the company was one of the first to link the loan to environmental goals.
Starting this year, a third-party firm audited the air emissions figures at Orion’s four plants in the U.S. and determined whether the company achieved its targets. If Orion meets its targets for all four years, the company could reduce its financing costs by a total of $2.6 million.
“We’re pleased the first round of audits for our term loan were successful,” said Corning Painter, Chief Executive Officer. “Achieving the emissions reduction goals underscores our strong focus and commitment to sustainability. We are confident we will have continued success achieving the emissions targets for the loan, which will lead to significant interest savings.”
Over the past five years, Orion has been upgrading its emissions control technology at all four of its U.S. plants. Three of these complex projects are completed, with the final one scheduled to be finished in 2023. The facilities are in Ivanhoe, La.; Belpre, Ohio; and the Texas cities of Orange and Borger.
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