IRVING, Texas, Jan. 13, 2022 /PRNewswire/ -- Commercial Metals
Company (NYSE: CMC) ("CMC") announced today that it has
delivered a conditional notice of redemption (the "Notice") to the
trustee of its outstanding 5.375% Senior Notes due 2027 (the
"2027 Notes"). The Notice calls for the redemption of all of the
outstanding $300 million aggregate
principal amount of the Notes on February
15, 2022 (the "Redemption Date") and is conditioned on the
closing of the issuance and sale of debt securities (in one or more
series) in an aggregate principal amount of at least $600 million on pricing, terms and conditions
satisfactory to the Company in its sole discretion, which condition
the Company may waive at its discretion.
The redemption price for the 2027 Notes will be equal to 100% of
the principal amount of the 2027 Notes redeemed, plus a
"make-whole" premium calculated as set forth in the 2027 Notes and
the indenture governing the 2027 Notes, plus accrued and unpaid
interest thereon, if any, to, but not including the Redemption
Date.
This press release does not constitute a notice of redemption of
the 2027 Notes. Information concerning the terms and conditions of
the redemption are described in the Notice which is expected to be
delivered to all currently registered holders of the 2027 Notes by
the trustee, U.S. Bank National Association, on or about the date
hereof. Beneficial holders with any questions about the redemption
should contact their respective brokerage firm or financial
institution.
This press release is not an offer to sell or a solicitation of
an offer to purchase the 2027 Notes or any other security.
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture,
recycle and fabricate steel and metal products, and provide related
materials and services through a network of facilities that
includes seven electric arc furnace ("EAF") mini mills, two EAF
micro mills, one rerolling mill, steel fabrication and processing
plants, construction-related product warehouses, and metal
recycling facilities in the United
States and Poland.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws with respect to CMC's
expectations concerning the redemption of the 2027 Notes and its
ability to complete future financings. These forward-looking
statements can generally be identified by phrases such as we or our
management "expects," "anticipates," "believes," "estimates,"
"intends," "plans to," "ought," "could," "will," "should,"
"likely," "appears," "projects," "forecasts," "outlook" or other
similar words or phrases. There are inherent risks and
uncertainties in any forward-looking statements. We caution readers
not to place undue reliance on any forward-looking statements.
Our forward-looking statements are based on management's
expectations and beliefs as of the time this press release is
issued. 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, we undertake 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 any other changes. Important
factors that could cause actual results to differ materially from
our expectations include those described in Part I, Item 1A, Risk
Factors, of our Annual Report on Form 10-K for the fiscal year
ended August 31, 2021 and in Part II, Item 1A, Risk Factors of
our subsequent Quarterly Reports on Form 10-Q as well as the
following: the achievement of closing conditions with respect to
the Notes Offering; changes in economic conditions which affect
demand for our products or construction activity generally, and the
impact of such changes on the highly cyclical steel industry; rapid
and significant changes in the price of metals, potentially
impairing our inventory values due to declines in commodity prices
or reducing the profitability of our downstream contracts due to
rising commodity pricing; impacts from COVID-19 on the economy,
demand for our products, global supply chain and on our operations,
including the responses of governmental authorities to contain
COVID-19 and the impact of various COVID-19 vaccines; excess
capacity in our industry, particularly in China, and product availability from competing
steel mills and other steel suppliers including import quantities
and pricing; compliance with and changes in existing and future
laws, regulations, and other legal requirements and judicial
decisions that govern our business, including increased
environmental regulations associated with climate change and
greenhouse gas emissions; involvement in various environmental
matters that may result in fines, penalties or judgments; evolving
remediation technology, changing regulations, possible third-party
contributions, the inherent uncertainties of the estimation process
and other factors that may impact amounts accrued for environmental
liabilities; potential limitations in our or our customers'
abilities to access credit and non-compliance of their contractual
obligations, including payment obligations; activity in
repurchasing shares of our common stock under our repurchase
program; financial covenants and restrictions on the operation of
our business contained in agreements governing our debt; our
ability to successfully identify, consummate and integrate
acquisitions and the effects that acquisitions may have on our
financial leverage; risks associated with acquisitions generally,
such as the inability to obtain, or delays in obtaining, required
approvals under applicable antitrust legislation and other
regulatory and third party consents and approvals; operating and
startup risks, as well as market risks associated with the
commissioning of new projects could prevent us from realizing
anticipated benefits and could result in a loss of all or a
substantial part of our investments; lower than expected future
levels of revenues and higher than expected future costs; failure
or inability to implement growth strategies in a timely manner;
impact of goodwill impairment charges; impact of long-lived asset
impairment charges; currency fluctuations; global factors, such as
trade measures, military conflicts and political uncertainties,
including changes to current trade regulations, such as Section 232
trade tariffs and quotas, tax legislation and other regulations
which might adversely impact our business; availability and pricing
of electricity, electrodes and natural gas for mill operations;
ability to hire and retain key executives and other employees;
competition from other materials or from competitors that have a
lower cost structure or access to greater financial resources;
information technology interruptions and breaches in security;
ability to make necessary capital expenditures; availability and
pricing of raw materials and other items over which we exert little
influence, including scrap metal, energy and insurance; unexpected
equipment failures; 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; and civil unrest, protests and riots.
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SOURCE Commercial Metals Company