Olin Corp. (NYSE:OLN) Q1 2018 Earnings Conference Call - Final Transcript
May 02, 2018 • 10:00 am ET
James A. Varilek
adjacent impact here from any of those other raw materials on Epoxy.
Got it. And then, just a quick one on the balance sheet here. You've made progress. You're progressing with the agencies on the ratings front. What are the gating factors to moving further up in terms of ratings and edging up towards IG, and then, just for the overall debt target, should we think about the term loan coming out over time, or do you feel like the amount of debt you have now is appropriate? And deleveraging will be somewhat from debt reduction, but primarily from EBITDA growth. How should we think about that?
James A. Varilek
I think you should think about it is that the metrics will continue to improve and they will continue to reflect both improvement in EBITDA and repayment of debt. We've commented in the past that when we target our debt-to-EBITDA ratio, we do it based on where we are in the cycle. We are obviously in and hopefully will continue to be in a good part of the cycle. And we need to get based on the historic volatility and cyclicality, we need to get that ratio down well to something in the 1.5 to 2 range. We believe to give us the cushion, when and if, the cycle turns that we stay in a good place.
We have always said that our objective is to run the company with investment grade credit metrics. Whether we get investment grade ratings or not is another element. That is not and has not been a strategy per se.
That's helpful. Thanks, guys.
This concludes our question-and-answer session. I would like to turn the conference back over to John Fischer for any closing remarks.
John E. Fischer
Thank you for joining us today and we look forward to speaking to you about our second quarter results.
[Operator Closing Remarks]