Metalico Agrees to Sale to Total Merchant, New PR Corrects Prior Pricing Error

In the news release "Metalico Agrees to Sale to Total Merchant" issued earlier today by Metalico, Inc. (NYSE MKT:

), we are advised by the company that the first sentence of the first paragraph should read, "The Board of Directors of Metalico, Inc. (NYSE MKT:

), an operator of scrap metal recycling facilities primarily in the eastern Great Lakes corridor, has agreed to sell the Company to Total Merchant Limited for total consideration of approximately $105 million," rather than "The Board of Directors of Metalico, Inc. (NYSE MKT:

), an operator of scrap metal recycling facilities primarily in the eastern Great Lakes corridor, has agreed to sell the Company to Total Merchant Limited for a total purchase price of approximately $87 million," as originally issued. Complete corrected text follows. CRANFORD, NJ -- Jun 16, 2015 -- The Board of Directors of Metalico, Inc. (NYSE MKT:

), an operator of scrap metal recycling facilities primarily in the eastern Great Lakes corridor, has agreed to sell the Company to Total Merchant Limited for total consideration of approximately $105 million. The all-cash deal will include a payment to Metalico's stockholders of $0.60 for each share of Metalico common stock owned by them as of the date of closing. The price includes roughly $44 million for Metalico's outstanding equity plus the cost of retiring the Company's primary term and institutional senior and convertible debt, estimated at approximately $45 million and the assumption of approximately $16 million of additional debt as of June 15, 2015. Total Merchant is an investment vehicle formed to seek appropriate opportunities in the United States metals and commodities market. Total Merchant is controlled by Mr. Chung Sheng Huang, the Chairman of the Board and Managing Director of Ye Chiu Group, one of the leading recyclers and producers of aluminum and aluminum alloys in the world and a prominent Asian scrap metal recycler with operating facilities in China and Malaysia. Under the terms of the governing Merger Agreement, a subsidiary of Total Merchant will merge with and into Metalico, making Metalico a wholly owned subsidiary of Total Merchant. The merger is subject to certain closing conditions, including approval of the Merger Agreement by holders of a majority of Metalico's outstanding common stock and other customary conditions. However, no regulatory approval is required. The transaction is expected to close in the third quarter of 2015, but the dates for Metalico's stockholder meeting to vote on the Merger Agreement and for closing the merger have not yet been determined, although the Merger Agreement has a termination date of September 21, 2015 and we have agreed with our senior lenders that the Merger should be completed by August 31, 2015. Under the terms of the Merger Agreement, Metalico has agreed not to solicit alternative proposals for an acquisition of the Company. However, Metalico is able to consider unsolicited proposals pursuant to the exercise of its Board of Directors' fiduciary duties with Total Merchant having customary rights to match any proposal. Metalico would be required to pay Total Merchant a termination fee equal to $2,245,930 (corresponding to 3.6% of the value of the fully diluted equity) if Metalico terminates the Merger Agreement to accept a superior proposal. In addition, Total Merchant has agreed to a penalty of $3,119,347 (corresponding to 5.0% of the fully-diluted equity) if it fails to close the transaction assuming all closing conditions have been satisfied. Total Merchant has agreed to escrow this amount. Total Merchant has also indicated it intends to retain Metalico's management and all other personnel. Metalico's Board has been investigating and evaluating strategic alternatives for the Company's future since early January. The Directors selected Total Merchant's offer after a review of several strategies, including continued independence as a public corporation, combinations or joint ventures with suitable partners or investors, sales of assets, and a sale of the Company, and analyses of several bids, including both solicited and unsolicited proposals from competitors, industrial concerns and strategic investors. Metalico is being advised on the transaction by its investment bank, Gordian Group LLC, and by in-house counsel and Lowenstein Sandler LLP. Total Merchant is being advised by its counsel K&L Gates LLP and by RPA Advisors. Metalico also entered into an amendment to its Rights Agreement to permit the execution of the Merger Agreement and certain other matters without triggering any rights under the Rights Agreement. About Metalico Metalico, Inc. and its subsidiaries operate Ferrous and Non-Ferrous Scrap Metal Recycling sites, including PGM and Minor Metals Recycling facilities. Company recycling locations, including three automobile shredders, are located in New York, Pennsylvania, Ohio, West Virginia, New Jersey and Mississippi. Metalico's common stock is traded on the NYSE MKT under the symbol MEA. Forward-looking Statements This news release contains "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, among others, those regarding the proposed transaction, the expected timetable for completing the transaction and whether the conditions to closing set forth in the Merger Agreement will be satisfied. These statements may contain terms like "expect," "anticipate," "believe," "should," "appear," "estimate" and other words that convey a similar meaning, or are statements that do not relate strictly to historical or current facts. Forward-looking statements include statements with respect to the parties ability to obtain requisite approvals and consummate the merger and with respect to Metalico's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond Metalico's control, and which may cause Metalico's actual results, performance or achievements to be materially different from future results, performance, expectations or achievements expressed or implied by such forward-looking statements. Factors that could cause such material difference are discussed in more detail in the Company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. All statements other than statements of historical fact are statements that could be forward-looking statements. Metalico assumes no obligation to update the information contained in this news release.