Celanese secures new $1.75 billion revolving credit facility

DALLAS - Celanese Corporation (NYSE:CE) has entered into a new credit agreement that includes a $1.75 billion senior unsecured revolving credit facility, the chemical and specialty materials company announced Monday. The company, currently valued at $5.2 billion by market capitalization, maintains a current ratio of 1.94x, indicating strong short-term liquidity.

The new facility replaces Celanese’s previous revolving credit facility of the same size that was set to mature in March 2027. The new agreement extends the company’s credit line until August 2030.

"This Agreement demonstrates our ongoing commitment to proactively and opportunistically manage Celanese’s debt and liquidity profile," said Chuck Kyrish, Senior Vice President and Chief Financial Officer, in a press release statement.

The company reported it maintained $1.2 billion in cash as of the end of the second quarter, in addition to the $1.75 billion of available capacity on the new revolving credit facility. With total debt of $13.1 billion and a debt-to-capital ratio of 0.7x, InvestingPro analysis indicates the company maintains a strong free cash flow yield, suggesting efficient capital management.

Celanese described itself as a global leader in chemistry with more than 11,000 employees worldwide and 2024 net sales of $10.3 billion. The Fortune 500 company produces specialty material solutions used across major industries and consumer applications. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation, with analysts projecting profitable performance this year. Discover detailed valuation metrics and 8 additional exclusive ProTips with an InvestingPro subscription.

The company indicated that further information regarding the agreement would be available in its Current Report on Form 8-K to be filed with the Securities and Exchange Commission.

In other recent news, Celanese Corporation reported its second-quarter earnings, surpassing analyst expectations. The company achieved an adjusted earnings per share of $1.44, slightly above the anticipated $1.40. Revenue for the quarter was $2.53 billion, which exceeded the consensus estimate of $2.5 billion, although it marked a 4.5% decrease from $2.65 billion in the same period last year. This revenue figure represented a 6% increase from the previous quarter, attributed to a 4% rise in volume and a 3% boost from currency effects, despite a minor offset due to price changes. However, the company issued third-quarter guidance that fell short of analyst projections, which has drawn significant attention. Despite the positive earnings report, the lower-than-expected guidance has raised concerns among investors. These developments have been closely monitored by analysts and investors alike.

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