Summary of Exchange Capital Structure Improvements and Debt Reduction:
- Launched
February 27, 2020 as a registered exchange offer to all holders of existing 5.0%/7.0% Second Lien Convertible PIK Toggle Notes dueAugust 31, 2022 (“Old Notes”), which totaled approximately$194.0 million at year end. The exchange offer expired at5:00 p.m., Eastern Time , onMarch 26, 2020 . - Greater than 98% of the Old Notes were tendered and accepted in the exchange offer.
- Including accrued PIK interest on the Old Notes through the closing date, which exchanged at the same rates as the tendered Old Notes, the completed transaction resulted in the exchange of approximately
$190.2 million principal amount of Old Notes for (i) approximately 70.3 million shares of the Company’s common stock, representing a 95% ownership of the pro forma equity of Castle, and (ii)$95.1 million in aggregate principal amount of new 3.0%/5.0% Second Lien Convertible PIK Toggle Notes due 2024. - Reduction in annual interest expense for the Company of over
$10.0 million . - Reduction in long-term debt for the Company of
$98.3 million . - Holders of the Old Notes participating in the exchange offer consented to certain amendments of the indenture governing the Old Notes to eliminate or amend substantially all of the restrictive covenants and release all collateral securing the Old Notes.
- Holders of the Old Notes who did not tender into the exchange offer will retain their Old Notes. Approximately
$3.7 million in aggregate principal amount of Old Notes remain outstanding after the exchange offer.
President & CEO
About
Founded in 1890,
Cautionary Statement on Risks Associated with Forward Looking Statements
Information provided and statements contained in this release that are not purely historical are forward-looking statements. Such forward-looking statements only speak as of the date of this release and the Company assumes no obligation to update the information included in this release. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy, the benefits that we expect to achieve from our working capital management initiative, and the timing and anticipated benefits of the Exchange Offer. These statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “predict,” “plan,” “should,” or similar expressions. These statements are not guarantees of performance or results, and they involve risks, uncertainties, and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include our ability to effectively manage our operational initiatives and implemented restructuring activities, the impact of volatility of metals prices, the impact of imposed tariffs and/or duties, the cyclical and seasonal aspects of our business, our ability to effectively manage inventory levels, and the impact of our substantial level of indebtedness, and our ability to successfully complete the Exchange Offer and realize the anticipated benefits of the Exchange Offer, as well as those risk factors identified in our Annual Report on Form 10-K for the fiscal year ended
For Further Information:
+1 (847) 455-7111
Email: Inquiries@amcastle.com
Source:
2020 GlobeNewswire, Inc., source