SOUTHFIELD, Mich. – On June 7, Federal-Mogul Corp. commenced a common stock rights offering and also at that time, initiated discussions with potential financing sources regarding the refinancing of its outstanding indebtedness. At the time, the company expected that the refinancing would be completed shortly after the completion of the rights offering. However, Federal-Mogul announced today that, due to volatile market conditions, the company intends to defer the refinancing activities.
Federal-Mogul says it will continue to evaluate market conditions and other relevant factors in connection with the potential refinancing of all or a portion of the company’s outstanding indebtedness. There can be no assurances as to the ultimate timing or terms of any such refinancing.
The completion of the company’s rights offering is not conditioned upon the completion of the refinancing. However, the company has determined, in light of the deferral of the refinancing, to offer rights holders the ability to withdraw the exercise of any previously exercised subscription rights and to extend the expiration date of the rights offering from June 27, 2013, to 5 p.m. EDT on July 1, 2013.
The rights are transferrable and, with respect to trading, the company understands that actions have been taken by a market-maker to list the rights on the OTC Bulletin Board. Any questions regarding the rights offering should be directed to D.F. King & Co. Inc., the Information Agent for the rights offering, by calling 1-800-901-0068 (toll-free) or 1-212-269-5550 (collect), or Computershare Trust Company, N.A., the Subscription Agent for the rights offering, by calling 1-800-546-5141.
