Minerals Technologies Refinances at 7.5% as Talc Liability Looms
Company Background
Minerals Technologies Inc. is a specialty minerals company with roughly 4,000 employees across 34 countries, serving paper, foundry, steel, consumer, and environmental markets. Annual sales run at roughly $2.1 billion. On an adjusted basis, the business generates solid cash flow — adjusted net leverage stood at 1.6x as of July 5, 2026, and trailing twelve-month adjusted EBITDA was approximately $380 million — but the GAAP picture has been heavily distorted by talc-related charges.
The company's subsidiary BMI OldCo Inc. (formerly Barretts Minerals Inc.) filed for Chapter 11 protection to resolve talc personal-injury claims. MTI took a $215 million reserve charge in the first quarter of 2025, then added a further $290 million charge in the second quarter of 2026 when it filed a Plan of Reorganization — proposing to fund a $450 million talc trust and waive more than $100 million in intercompany claims. Those non-cash charges, totaling $505 million over roughly six quarters, have swamped reported results while leaving the core operating business largely intact.
For the six months ended July 5, 2026, consolidated sales were $1.1 billion, up 7 percent year-over-year, and non-GAAP diluted EPS was $2.98. The reported GAAP net loss attributable to MTI was $147.4 million, driven almost entirely by the Q2 talc reserve addition. Management reaffirmed a mid-single-digit full-year revenue growth target.
What Was Disclosed
MTI priced $400 million in 7.500% senior notes due 2032 at par on October 1, 2026, with the offering expected to close on October 13, 2026. The notes are guaranteed by wholly owned domestic restricted subsidiaries that are already obligors under the company's senior secured credit facilities. Proceeds, together with cash on hand, will be used to redeem all outstanding 5.000% senior notes due 2028 and to pay transaction fees and expenses.