EVANSVILLE, Ind. — Accuride Corp. announced it has priced $310 million aggregate principal amount of 9.5 percent first priority senior secured notes due 2018 (the “Notes”) in a private placement that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Act”). The principal amount represents an increase of $10 million over the previously announced principal amount. The Notes will be sold at a price equal to 97.288 percent of their face value. The sale of the Notes is expected to close on July 29, 2010, subject to customary closing conditions.
The company intends to use the net proceeds from the offering of the Notes, together with approximately $10 million of expected borrowings under a new senior secured asset based revolving credit facility and cash on hand, to refinance its existing senior credit facility and to pay related fees and expenses.
The Notes will be senior secured obligations of the company and will be initially guaranteed by all of the company’s domestic subsidiaries. The Notes and the related guarantees have not been registered under the Act or the securities laws of any other place and may not be offered or sold in the United States absent registration or an applicable exemption therefrom. The Notes are being offered only to qualified institutional buyers in accordance with Rule 144A under the Act and to persons outside of the United States in accordance with Regulation S under the Act.
