Jan 19 2010
Accellent Inc. (“Accellent” or “the Company”) announced today that it
has adopted a plan to refinance (the "Refinancing") its existing senior
secured credit facilities and replace them with indebtedness that has
longer-dated maturities. The plan, which has been unanimously approved
by the Company's Board of Directors, would strengthen the Company’s
capital structure by extending nearer term maturities such that the
Company has no maturities until November 2013.
“This transaction accomplishes a key objective in recapitalizing
Accellent for the long term”
Pursuant to the plan, the Company would enter into a new asset-based
revolving credit facility with undrawn commitments thereunder of up to
$75 million maturing in 2015 (the "ABL Revolver"), which will become
effective upon completion of the Refinancing and would issue
approximately $400 million in aggregate principal amount of senior
secured notes due 2017 (the "Notes"). Proceeds from the Notes will be
used to re-pay the Company’s existing senior secured credit facility.
"This transaction accomplishes a key objective in recapitalizing
Accellent for the long term," said Kenneth W. Freeman, Executive
Chairman and acting Chief Executive Officer of Accellent.
Upon completion of the transactions, the ABL Revolver would be secured
by first-priority liens on all accounts receivable, inventory, cash,
related general intangibles and instruments and proceeds of the
foregoing (the "ABL Collateral") and by second-priority liens on all the
other assets of the Company and the guarantors of the ABL Revolver. The
Notes would be secured by first-priority liens on all the assets other
than the ABL Collateral owned by the Company and the guarantors of the
Notes and by second-priority liens on the ABL Collateral