GenCorp seeks loan amendment to deal with potential convertibles put

By Sara Rosenberg

New York, July 7 - GenCorp Inc. is looking to amend its credit facility to address the potential need to refinance its $125 million of 4% contingent convertible subordinated notes on Jan. 16, 2010, according to a news release.

Currently, the credit facility contains certain restrictions surrounding the refinancing of the notes.

The company explained that given its present and forecasted liquidity through January 2010, in the event the 4% notes are put, there may not be sufficient liquidity to immediately repay the noteholders.

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

Imperial Capital LLC has been engaged to help with the loan amendment and convertibles refinancing.

At May 31, the company had cash balances of $126.9 million, $85 million issued under its $125 million letter-of-credit subfacility and its $80 million revolver, which has availability restricted to $60 million, was unused.

GenCorp is a Rancho Cordova, Calif.-based manufacturer of aerospace and defense products and systems.

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