IRVING, Texas, July 11, 2017 /PRNewswire/ -- Commercial
Metals Company (NYSE: CMC) ("CMC") announced today the results of
its pending cash tender offer (the "Tender Offer") for up to
$300.0 million aggregate purchase
price, excluding accrued interest (the "Aggregate Maximum Purchase
Price"), of its outstanding 7.35% Senior Notes due 2018 (the "2018
Notes") as of 5:00 p.m., New York
City Time, on July 10, 2017 (the
"Early Participation Date"), as well as the anticipated early
settlement date for the Tender Offer of July
11, 2017 (the "Early Settlement Date").
All terms and conditions of the Tender Offer remain unchanged as
set forth in the offer to purchase, dated June 26, 2017 (the "Offer to Purchase"). Based on
information received from Global Bondholder Services Corporation,
the Depositary and Information Agent for the Tender Offer ("GBSC"),
the following table sets forth the aggregate principal amount of
2018 Notes that were tendered and not validly withdrawn on or
before the Early Participation Date, the aggregate principal amount
of 2018 Notes expected to be accepted for purchase on the Early
Settlement Date and the total consideration payable for such
accepted 2018 Notes.
Title of
Notes
|
CUSIP
No.
|
Outstanding
Principal Amount
Prior to
Tender Offer
|
Aggregate
Principal Amount
of 2018
Notes
Tendered
|
Aggregate
Principal
Amount of 2018 Notes
Expected to be
Accepted for
Purchase
|
Total
Consideration(1)
|
7.35% Senior Notes
due 2018
|
201723 AJ2
|
$399,818,000.00
|
$164,632,000.00
|
$164,632,000.00
|
$1,058.75
|
|
(1) Per $1,000.00 principal
amount of 2018 Notes accepted for purchase and includes the early
participation payment of $30.00 per $1,000.00 principal amount of
2018 Notes that are accepted for purchase (subject, in each case,
to the Aggregate Maximum Purchase Price and proration). Excludes
accrued interest.
|
Following the acceptance of the 2018 Notes set forth in the
table above on the Early Settlement Date, CMC will purchase any
remaining 2018 Notes that have been validly tendered at or prior to
the Expiration Date (as defined below) and accepted for purchase,
subject to proration and the Aggregate Maximum Purchase Price,
promptly following the Expiration Date (the "Final Settlement
Date"). The Final Settlement Date is expected to occur on the first
business day following the Expiration Date.
The Tender Offer is subject to the conditions described in the
Offer to Purchase, including the condition that, prior to or on the
Early Participation Date, CMC has consummated a financing
transaction on terms and conditions satisfactory to CMC resulting
in net proceeds to CMC that are sufficient to pay the Aggregate
Maximum Purchase Price. CMC expects that these conditions,
including the financing condition, will be satisfied as of the
Early Settlement Date.
The Tender Offer will expire at 11:59
p.m., New York City Time, on July 24,
2017, unless extended or earlier terminated by CMC (the
"Expiration Date"). No tenders will be valid if submitted after the
Expiration Date. The deadline for holders to validly withdraw
tenders of 2018 Notes has passed. As a result, 2018 Notes that were
already tendered at the Early Participation Date and any 2018 Notes
subsequently tendered on or before the Expiration Date may no
longer be withdrawn from the Tender Offer except in the limited
circumstances where withdrawal rights are required by law.
The Tender Offer is being made pursuant to the Offer to
Purchase, which more fully sets forth the terms and conditions of
the Tender Offer. Holders are urged to read the Offer to Purchase
carefully before making any decision with respect to the Tender
Offer. Requests for documents relating to the Tender Offer may be
directed to GBSC at (866) 807-2200 (toll-free) or
(212) 430-3774 (collect). Citigroup Global Markets Inc. is
acting as Dealer Manager for the Tender Offer. Questions regarding
the Tender Offer may be directed to Citigroup Global Markets Inc.
at (800) 558-3745 (toll-free) or (212) 723-6106
(collect).
None of CMC, its board of directors, its officers, the dealer
manager, the depositary, the information agent or the trustee of
the 2018 Notes, or any of their respective affiliates, makes any
recommendation that holders tender or refrain from tendering all or
any portion of the principal amount of their 2018 Notes, and no one
has been authorized by any of them to make such a recommendation.
Holders must make their own decision as to whether to tender their
2018 Notes and, if so, the principal amount of 2018 Notes to
tender. The Tender Offer is made only by the Offer to
Purchase. This press release is neither an offer to purchase
nor a solicitation of an offer to sell any 2018 Notes in the Tender
Offer. The Tender Offer is not being made to holders of 2018
Notes in any jurisdiction in which the making or acceptance thereof
would not be in compliance with the securities, blue sky or other
laws of such jurisdiction.
About Commercial Metals Company
Commercial Metals Company and subsidiaries manufacture, recycle
and market steel and metal products, related materials and services
through a network including steel minimills, steel fabrication and
processing plants, construction-related product warehouses, metal
recycling facilities and marketing and distribution offices in
the United States and in strategic
international markets.
Forward – Looking Statements
This news release contains forward-looking statements regarding
CMC's expectations concerning the Tender Offer and the repurchase
and cancellation of 2018 Notes through the Tender Offer.
These forward-looking statements generally can be identified by
phrases such as CMC or its management expects, anticipates,
believes, estimates, intends, plans to, ought, could, will, should,
likely, appears or other similar words or phrases. There are
inherent risks and uncertainties in any forward-looking statements.
Although we believe that our expectations are reasonable, we can
give no assurance that these expectations will prove to have been
correct, and actual results may vary materially. Except as required
by law, CMC undertakes no obligation to update, amend or clarify
any forward-looking statements to reflect changed assumptions, the
occurrence of anticipated or unanticipated events, new information
or circumstances or otherwise.
Factors that could cause actual results to differ materially
from CMC's expectations include the following: the satisfaction or
waiver of closing conditions with respect to the tender offer for
the 2018 Notes; the achievement of closing conditions and
regulatory approvals with respect to CMC's recently announced plans
to exit its International Marketing and Distribution Segment and
sell its raw materials trading division; the results of
negotiations, the completion of potential transactions on intended
timetables or at all; rapid and significant changes in the price of
metals; excess capacity in our industry, particularly in
China, and product availability
from competing steel minimills and other steel suppliers including
import quantities and pricing; currency fluctuations; compliance
with and changes in environmental laws and regulations, including
increased regulation associated with climate change and greenhouse
gas emissions; potential limitations in our or our customers'
ability to access credit and non-compliance by our customers with
our contracts; financial covenants and restrictions on the
operation of our business contained in agreements governing our
debt; global factors, including political uncertainties and
military conflicts; availability of electricity and natural gas for
minimill operations; information technology interruptions and
breaches in security data; ability to retain key executives;
ability to make necessary capital expenditures; availability and
pricing of raw materials over which we exert little influence,
including scrap metal, energy, insurance and supply prices;
unexpected equipment failures; competition from other materials or
from competitors that have a lower cost structure or access to
greater financial resources; losses or limited potential gains due
to hedging transactions; litigation claims and settlements, court
decisions, regulatory rulings and legal compliance risks; risk of
injury or death to employees, customers or other visitors to our
operations; increased costs related to health care reform
legislation; and those factors listed under Item 1A. Risk Factors
included in CMC's Annual Report filed on Form 10-K for the fiscal
year ended August 31, 2016 and any
subsequently filed Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
View original
content:http://www.prnewswire.com/news-releases/commercial-metals-company-announces-early-participation-results-and-early-settlement-date-for-cash-tender-offer-for-outstanding-2018-senior-notes-300486111.html
SOURCE Commercial Metals Company