By Sarah Lizee
Olympia, Wash., June 26 – Exide Technologies said it completed a comprehensive new financing and recapitalization transaction led by its institutional shareholders, enhancing the company’s liquidity, extending debt maturities and deleveraging its balance sheet.
New 10¾% notes
The company issued $150 million of 10¾% superpriority-lien senior secured notes due Oct. 31, 2021 through new wholly owned subsidiary Exide International Holdings LP. The maturity may be extended for one year at the company’s option for a 1% cash fee payable to the holders of the new notes.
Exchange offers
In addition, on Tuesday, the Exide completed the early settlement for a series of concurrent exchange offers and consent solicitations. On the early settlement date, the company
• Exchanged $529.8 million principal amount, or 99.8%, of its $530.8 million of outstanding 11% first-lien senior secured notes due April 30, 2022 for a combination of (i) $375 million aggregate principal amount of new 11% exchange-priority notes due Oct. 31, 2024 and (ii) $154.8 million aggregate principal amount of new 11% first-lien senior secured notes due Oct. 31, 2024. The mandatory cash component of the 11% interest rate applicable to the exchange priority notes and new first lien notes, as compared to the existing first lien notes, reflects a reduction from 4% to 3%; and
• Exchanged (a) $371.8 million aggregate principal amount, or 99.5%, of its $373.8 million principal amount of outstanding 7% second-lien senior secured convertible payment-in-kind notes due April 30, 2025 for a combination of (i) $211.2 million of 7.25% 1.5-lien senior secured convertible PIK notes due April 30, 2027 and (ii) 18.2 million shares of common stock and (b) $92.4 million aggregate principal amount, or 99.8%, of its outstanding $92.6 million aggregate principal amount of 7.25% second-lien senior secured convertible PIK notes due 2025 for a combination of (i) $78.8 million aggregate principal amount of new 1.5-lien notes and (ii) 3.1 million shares of common stock.
The final settlement date for the exchange offers and consent solicitations is expected to occur on July 9.
Supplemental indentures
In connection with the consent solicitations, the company also entered into supplemental indentures relating to the existing first-lien notes and existing second-lien notes to, among other things, eliminate substantially all of the restrictive covenants and some events of default and provide that the collateral will cease to secure those notes.
The supplemental indentures relating to the second-lien notes also modified various covenants and conversion terms and provided for the mandatory conversion on July 10 of any remaining existing second-lien notes into 50% new 1.5-lien notes and 50% common stock.
ABL amendment
The company also entered into an amendment to its existing asset-based lending facility to, among other things, permit the above transactions, extend the maturity date to July 31, 2021, reduce the commitments to $180 million from $200 million and add other guarantees and collateral.
Exide Technologies is a Milton, Ga.-based maker and recycler of lead-acid batteries.
Superpriority-lien notes
| Issuer: | Exide International Holdings LP
|
| Issue: | Superpriority-lien senior secured notes
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| Amount: | $150 million
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| Maturity: | Oct. 31, 2021
|
| Coupon: | 10¾%
|
|
|
| Exchange-priority notes
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| Issuer: | Exide Technologies
|
| Issue: | Exchange-priority notes
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| Amount: | $375 million
|
| Maturity: | Oct. 31, 2024
|
| Coupon: | 11%
|
|
|
| First-lien notes
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| Issuer: | Exide Technologies
|
| Issue: | First-lien senior secured notes
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| Amount: | $154.8 million
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| Maturity: | Oct. 31, 2024
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| Coupon: | 11%
|
|
|
| 1.5-lien notes
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| Issuer: | Exide Technologies
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| Issue: | 1.5-lien senior secured convertible PIK notes
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| Amount: | $290 million
|
| Maturity: | April 30, 2027
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| Coupon: | 7.25%
|
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