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Accepts $736.0 million of tendered bonds in debt-for-equity exchange
that reduces debt by more than 50 percent and reduces annual cash
interest costs by $69.7 million
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Amends senior secured credit agreement to ease covenants until
December 31, 2011
Georgia Gulf Corporation (NYSE: GGC) today announced the closing of its
previously announced private debt exchanges and the effectiveness of a
long-term amendment to its senior secured credit agreement.
"For several months we have been working closely with our lenders and
bondholders to restructure our balance sheet and provide Georgia Gulf
the financial flexibility to weather current economic conditions and to
provide a solid foundation for growth. With our new capital structure,
valuable asset base and skilled and dedicated employees, we are a strong
business partner positioned for the long term in our chemicals and
building products businesses. We look forward to continuing to work with
our customers and suppliers to lead our markets as economic conditions
improve," commented Paul Carrico, Georgia Gulf's President and CEO.
Debt Exchanges
Georgia Gulf previously announced the results of its private offers to
exchange its outstanding 7.125 percent Senior Notes due 2013 (the “2013
notes”), 9.5 percent Senior Notes due 2014 (the “2014 notes”), and 10.75
percent Senior Subordinated Notes due 2016 (the “2016 notes” and,
collectively with the 2013 notes and 2014 notes, the “notes”), for
shares of its convertible preferred stock and shares of its common
stock. Approximately $736.0 million, or 92.0 percent in aggregate
principal amount, of the notes were accepted in exchange for
approximately 30.2 million shares of convertible preferred stock and 1.3
million shares of common stock, giving effect to the 1-for-25 reverse
stock split that became effective today.
Today, approximately $726.0 million of aggregate principal amount of
notes, together with the Company's obligations for accrued interest
under such notes, were extinguished in settlement of the exchange offers
in exchange for shares of common and convertible preferred stock.
