Exide Technologies Completes Comprehensive New Financing And Recapitalization - aftermarketNews

Exide Technologies Completes Comprehensive New Financing And Recapitalization

The transaction “has enhanced the company’s liquidity, extended debt maturities and deleveraged its balance sheet,” according to Exide.

Exide Technologies announced the completion of a comprehensive new financing and recapitalization transaction led by the company’s institutional shareholders.

The transaction “has enhanced the company’s liquidity, extended debt maturities and deleveraged its balance sheet,” according to Exide.

“We believe this transaction is a great outcome for Exide and is intended to significantly improve Exide’s financial position allowing for further growth and continued reinvestment in our business,” said Tim Vargo, chairman, president and CEO of Exide Technologies. “The continued support of our shareholders and lenders provides the company an enhanced financial position to drive long-term value.”

As part of the recapitalization, the company, through a new wholly owned subsidiary, Exide International Holdings LP, has issued $150 million aggregate principal amount of new 10.75% super-priority lien senior secured notes due Oct. 31, 2021, which may be extended for one year at the company’s option for a 1% cash fee payable to the holders of the new notes.

The new notes generated approximately $125 million of net proceeds after fees and expenses.

In addition, on June 25, the company completed the early settlement for a series of concurrent exchange offers and consent solicitations.

The final settlement date for the exchange offers and consent solicitations is expected to occur on July 9. The outstanding offers remain subject to the terms and conditions described in the applicable confidential offering memorandum and exchange offer and consent solicitation statement previously distributed to the noteholders.

In connection with the consent solicitations described above, the company also entered into supplemental indentures with respect to the existing first lien notes and existing second lien notes to, among other things, eliminate substantially all of the restrictive covenants and certain events of default and provide that the collateral will cease to secure such notes.

The supplemental indentures with respect to second lien notes also modified various covenants and conversion terms and provided for the mandatory conversion on July 10 of any remaining existing second lien notes into 50% new 1.5 lien notes and 50% common stock. The company also entered into an amendment to its existing asset-based lending facility to, among other things, permit the transactions described in this announcement; extend the maturity date to July 31, 2021; reduce the commitments thereunder from $200,000,000 to $180,000,000; and add certain other guarantees and collateral.

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