Libbey Plans to Issue $450.0 Million of Senior Secured Notes
Libbey Inc. (NYSE: LBY) announced today that its wholly owned subsidiary Libbey Glass Inc. plans to issue $450.0 million aggregate principal amount of senior secured notes due 202 in a private placement. Libbey Glass intends to use the net proceeds from the sale of the Notes, as well as cash on hand and borrowings under the Amended and Restated Senior Secured Credit Agreement (as defined below) to (i) repurchase pursuant to the previously announced tender offer up to $320.0 million of the outstanding 10% Senior Secured Notes due 2015 issued by Libbey Glass; (ii) redeem $40.0 million in aggregate principal amount of the Existing Notes; (iii) contribute $79.7 million to Libbey's U.S. pension plans to fully fund its target obligations under ERISA, thereby reducing future required cash contributions to the plans; and (iv) pay related fees and expenses.
The sale of the Notes is contingent upon certain conditions, including the consummation of the Tender Offer and the consummation of certain amendments to the existing senior secured asset-based revolving credit facility by Libbey Glass and its direct wholly owned subsidiary Libbey Europe B.V., as borrowers, and Libbey and certain of Libbey Glass's existing and future subsidiaries as guarantors.
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