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Metalico exchanges $10 million more convertibles, ups debt exchange
By Jennifer Chiou
New York, June 5 - Metalico, Inc. said it accelerated and increased its previously announced two-tranche debt-for-equity exchange by $5 million, this time issuing 2,463,552 shares in exchange for $10 million of its 7% senior unsecured convertible notes due April 30, 2028 on Thursday.
On April 24, the company began the debt-for-equity exchange with holders of $5 million of its convertible notes. At the time, the company said that the transaction would reduce overall debt by about $10 million. It now notes that it has reduced its overall debt by more than $15 million.
In April, Metalico exchanged 1,245,354 common shares for $5 million of its 7% notes in the first tranche.
The second tranche was originally scheduled for June 9 and lifted from $5 million.
In this tranche, the number of shares that the company issued had a value equal to $610 per $1,000 of notes, based on a per share price of $2.4761.
The price per share was calculated based on the simple average of the volume-weighted average price of the company's common stock for the 10 trading days prior to the exchange of the $10 million of notes.
In the first tranche, the number of shares that the company issued had a value equal to $580 per $1,000 of notes, based on a per share price of $2.32866.
As a result of the "true-up" of shares following a 25-day trading period following the exchange, Metalico said it retired an additional $75,022 of notes while no additional shares were issued.
The company said that it may engage in more exchanges.
Metalico is a Cranford, N.J., scrap metal recycler and lead products fabricator.
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