Chart Industries to exchange debt for equity, obtains extension on waiver

By Carlise Newman

Chicago, May 1 - Chart Industries Inc. has reached an agreement in principle with its senior lenders on a restructuring plan, and its waiver of defaults and covenant violations under the credit agreement has been extended to June 30.

Under the restructuring, the $257 million in existing senior debt would be converted into a new $40 million revolving credit facility and a $120 million term loan, with the balance of the existing senior debt exchanged for equity.

Following the restructuring, the shareholders will initially own 5% of the company and may purchase up to 5% of additional equity through the stock warrants. The agreement in principle with the senior lenders will allow the company to operate its businesses as usual during and after the restructuring.

The company has also entered into an agreement with its senior lenders to amend its existing credit agreement. Under the terms of the amendment, the senior lenders have agreed to defer interest and principal payments to June 30 and to permit the company to sell additional non-core assets, which would provide the company with increased liquidity.

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