Cornerstone Chemical shutters Louisiana plant, posts 2Q21 earnings pop

Cornerstone Chemical declared force majeure on its operations, shutting down its sole plant in Louisiana in response to Hurricane Ida last week, according to two sources following the situation. Insurance proceeds from the business interruption have yet to be determined, one of the sources added.

On the earnings front, revenue for the Littlejohn-owned company shook out to USD 181.3m for 2Q21, compared to USD 77.5m in 2Q20, the sources noted. The company credited the jump to an increase in demand for acrylonitrile, the sources said.

Gross margin totaled USD 54.9m, up from USD 26m from the same quarter the prior year. Adjusted EBITDA for the quarter came out to USD 24.6m, compared to USD 3.6m in 1Q21 and roughly USD 8.7m in 2Q20.

As of 30 June, liquidity totaled USD 36m through USD 1.769m of cash and roughly USD 34m of revolver availability. 

The issuer’s USD 450m 6.75% first lien bonds due 2024 last traded at 88.625 to yield 11.41% on 2 September, compared to trades at 90 to yield 10.73% on 11 August, according to MarketAxess.

Cornerstone declined to comment. 

2021 Debtwire

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