W.R. Grace to buy $5 million CeraTech convertible redeemable preferreds

By Caroline Salls

Pittsburgh, Feb. 21 - W.R. Grace & Co. obtained court approval to buy $5 million of preferred shares of CeraTech, Inc. in a two-part transaction, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the share purchase agreement, W.R. Grace will buy 125,000 newly created series C convertible redeemable preferred shares for a price of $40 per share under an equity financing transaction.

The company will pay $3 million for 75,000 of the shares under an initial closing, and it will pay $2 million for the rest of the shares at the second closing, which must occur by Jan. 11, 2009.

In connection with the financing, W.R. Grace and CeraTech will enter into an exclusive sales, marketing and distribution agreement and a supply agreement, the filing said.

CeraTech will use the share sale proceeds for working capital and general corporate purposes.

W.R. Grace, a Columbia, Md.-based specialty chemicals company, filed for bankruptcy on April 2, 2001. Its Chapter 11 case number is 01-01139.

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