GenCorp looks to amend loan to allow for potential convertibles repurchase

By Sara Rosenberg

New York, March 27 - GenCorp Inc. is seeking an amendment to its senior credit facility to allow for the repayment of its $125 million of 4% contingent convertible subordinated notes that are putable on Jan. 16, 2010, according to a news release.

Currently, the credit facility contains certain restrictions surrounding the refinancing of the notes and based on the company's current and forecasted liquidity through January 2010, if the notes are put, there would not be enough liquidity to immediately repay the noteholders.

The company said that if it is unable to amend the credit facility and obtain financing to repurchase the notes before January 2010, it may need to consider other alternatives.

GenCorp is a Rancho Cordova, Calif.-based technology-based manufacturer of aerospace and defense products and systems with a real estate segment.

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