Hexcel Announces Plan to Call Remaining Senior Subordinated Notes

Hexcel Corporation HXL HXL announced that it plans to redeem its remaining $73.5 million 6.75% senior subordinated notes on June 25, 2012 at a call premium of 1.125%. The senior subordinated notes are due on February 1, 2015. The redemption and related costs will be funded solely from a $75 million add-on to Hexcel's revolving loan facility that was just completed, increasing the $285 million facility to $360 million. The facility matures in July 2015. The total transaction costs, including the 1.125% call premium, bank fees and related expenses, will be almost $1.5 million. Hexcel expects interest expense will decrease in the first year by nearly $3 million. Hexcel will accelerate the unamortized financing costs related to the notes and expense the call premium incurring a pretax charge of $1.1 million (after tax of $0.01 per diluted share) in the second quarter of 2012.