Steel Partners to issue preferreds in acquisition of Steel Excel stake

By Angela McDaniels

Tacoma, Wash., Dec. 23 – Steel Partners Holdings LP will offer to issue 6% cumulative preferred units in exchange for the common stock of Steel Excel Inc. that it does not own, according to a company news release.

The company has agreed to acquire the 36% of Steel Excel that it does not already own via an exchange offer. Holders who exchange will receive $17.80 of preferred units per Steel Excel share.

The preferred units will have a nine-year term.

The preferred units will be redeemable at any time at the option of Steel Partners in cash or in common units.

Steel Partners agreed to offer to repurchase or redeem, for cash on a pro rata basis, 20% of the preferred units to be issued in the transaction within the first three years after completion of the transaction.

Steel Partners will apply to have the preferred units be listed on the New York Stock Exchange.

The completion of the exchange offer is subject to customary conditions, including the tender of a number of shares of Steel Excel’s common stock that constitutes at least a majority of Steel Excel’s outstanding shares and a majority of Steel Excel’s outstanding shares not owned by Steel Partners or any of its affiliates.

The acquisition is expected to be completed in the first half of 2017.

Steel Excel is based in New York. It provides oil well services to exploration and production companies and also provides youth sports services and facilities.

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