By Laura Lutz
Des Moines, Nov. 2 - Ormet Corp. said it completed a $35 million private placement of three-year senior subordinated notes exchangeable into common stock.
Each $1,000 principal amount of notes will be exchangeable into 66.6666 common shares.
The notes will carry a 10% interest rate if paid in cash. Ormet may choose to instead pay a 3% interest rate in cash and a 12% payment-in-kind interest rate.
The financing was needed because of a dramatic drop in metal prices and because of Hurricane Dean's disruption of supply deliveries, according to a company news release.
Based in Hannibal, Ohio, Ormet produces aluminum, aluminum billet products and smelter-grade alumina.
| Issuer: | Ormet Corp.
|
| Issue: | Senior subordinated notes exchangeable into common stock
|
| Amount: | $35 million
|
| Maturity: | Three years
|
| Coupon: | 10% in cash or 3% in cash plus 12% PIK
|
| Price: | Par
|
| Exchange ratio: | 66.6666 shares per $1,000 principal amount of notes
|
| Settlement date: | Nov. 2
|
| Distribution: | Private placement
|
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