Company: GrafTech International Ltd.
Symbol: EAF
Description: They are a leading manufacturer of high quality graphite electrode products essential to the production of electric arc furnace (or EAF) steel and other ferrous and non-ferrous metals.
Trade Date: 4/19
Shares: 37.8 million
Price Range: $21.00-$24.00
Underwriter(s): J.P. Morgan, Credit Suisse, Citigroup, RBC Capital Markets, HSBC
Co-Manager(s): BMO Capital Markets, BNP PARIBAS, CIBC Capital Markets, National Bank Financial
Terms Added: 4-4-18
Business: They believe that they have the most competitive portfolio of low-cost graphite electrode manufacturing facilities in the industry, including three of the five highest capacity facilities in the world (excluding China). They are the only large scale graphite electrode producer that is substantially vertically integrated into petroleum needle coke, the primary raw material for graphite electrode manufacturing, which is currently in limited supply. This unique position provides them with competitive advantages in product quality and cost. Founded in 1886, they have over 125 years of experience in the research and development (or R&D) of graphite- and carbon-based solutions, and their intellectual property portfolio is extensive. They currently have graphite electrode manufacturing facilities in Calais, France, Pamplona, Spain, Monterrey, Mexico and St. Marys, Pennsylvania. Their customers include major steel producers and other ferrous and non-ferrous metal producers in Europe, the Middle East and Africa (or EMEA), the Americas and Asia-Pacific (or APAC), which sell their products into the automotive, construction, appliance, machinery, equipment and transportation industries. Their vision is to be the lowest cost, highest quality producer of graphite electrodes while providing the best customer service. Based on the high quality of their graphite electrodes, reliability of their petroleum needle coke supply and their excellent customer service, they believe that they are viewed as the preferred supplier to the global EAF steel producer market.
Financials: Their net sales were $533.0 million, $438.0 million, and $550.8 million, and their net income (loss) was ($154.2 million), ($235.8 million), and $8.0 million in 2015, 2016, and 2017, respectively. They currently expect to pay a quarterly cash dividend of $0.085 per share following the completion of this offering, or an aggregate of $0.34 per share on an annualized basis, for a 1.5% annual return, based on the midpoint of the offering price.
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