Ferroglobe signs purchase agreement for $40 million of new notes

By Sarah Lizee

Olympia, Wash., May 13 – Ferroglobe plc said that on Wednesday its new indirect subsidiary, Ferroglobe Finance Co. plc, entered into a note purchase agreement for an initial $40 million of $60 million new 9% senior secured notes due June 30, 2025 under a lock-up agreement dated March 27.

The $40 million of notes are expected to be issued early next week.

In line with the terms of the lock-up agreement, all holders of the existing 9 3/8% senior notes due 2022 will have the right to subscribe for a pro rata share of the new $60 million notes. The company said details of this process will be communicated to holders in due course.

Holders of the 2022 senior notes that have not yet signed the lock-up agreement may contact the information agent at ProjectFox@glas.agency to access further information and for details of how to accede to the lock-up agreement.

Noteholders may still become eligible for the 0.5% late cash consent fee by signing the lock-up agreement and holding 2022 senior notes that became locked-up notes on or prior to the date on which the solicitation period of the exchange offer ends, and the 1.75% exchange offer equity fee by participating in the exchange offer.

As previously reported, the company announced that it reached an agreement in principle on the terms of a financing proposal relating to a $100 million capital raise, consisting of issuances of new debt and equity, and a three-year extension of its 9 3/8% senior notes due 2022.

On March 27, the company entered into a lock-up agreement with members of an informal group of noteholders representing in aggregate about 60% of the 2022 senior notes and Tyrus Capital as backstop provider in respect of a $40 million equity raise forming part of the transaction.

The lock-up effective date under the agreement is March 28.

Ferroglobe is a London-based supplier of silicon metal, silicon-based specialty alloys and ferroalloys.

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