Libbey Closes $400 Million Private Placement of Senior Secured Notes
February 08 2010 - 12:10PM
PR Newswire (US)
TOLEDO, Ohio, Feb. 8 /PRNewswire-FirstCall/ -- Libbey Inc. (NYSE
Amex: LBY) ("Libbey" or "Company") announced today that its wholly
owned subsidiary Libbey Glass Inc. ("Libbey Glass") has completed
its previously announced private placement of $400 million
aggregate principal amount of 10% senior secured notes due 2015
(the "Notes"). The Notes were offered to qualified institutional
buyers pursuant to Rule 144A and Regulation S under the Securities
Act of 1933, as amended (the "Securities Act"). Libbey Glass used
the net proceeds, together with cash on hand, to (i) repurchase its
existing $306 million Floating Rate Senior Secured Notes due 2011
in a previously announced tender offer, (ii) repay its $80.4
million Senior Subordinated Secured Payment-in-Kind Notes due 2021
and (iii) pay related fees and expenses. The Notes, the Libbey
guarantee of the Notes and the subsidiary guarantees of the Notes
have not been and will not be registered under the Securities Act
of 1933, as amended (the "Securities Act"), or any state securities
laws, and may not be offered or sold in the United States or to
U.S. persons absent registration or an applicable exemption from
the registration requirements. The Company also announced today the
execution of a new $110 million senior secured asset-based
revolving credit facility by Libbey Glass and its direct wholly
owned subsidiary Libbey Europe B.V., as borrowers, and Libbey and
certain of Libbey Glass's existing and future subsidiaries as
guarantors. This press release shall not constitute an offer to
sell or a solicitation of an offer to buy any securities, nor shall
there be any sale of securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. Based in Toledo, Ohio, since 1888, the
Company operates glass tableware manufacturing plants in the United
States, Mexico, China, Portugal and the Netherlands. This press
release includes forward-looking statements as defined in Section
27A of the Securities Act and Section 21E of the Securities
Exchange Act of 1934, as amended. Such statements only reflect the
Company's best assessment at this time and are indicated by words
or phrases such as "goal," "expects," " believes," "will,"
"estimates," "anticipates," or similar phrases. Investors are
cautioned that forward-looking statements involve risks and
uncertainty, that actual results may differ materially from such
statements, and that investors should not place undue reliance on
such statements. These forward-looking statements may be affected
by the risks and uncertainties in the Company's business. This
information is qualified in its entirety by cautionary statements
and risk factor disclosures contained in the Company's Securities
and Exchange Commission filings, including the Company's report on
Form 10-K filed with the Commission on March 16, 2009. Important
factors potentially affecting performance include but are not
limited to increased competition from foreign suppliers endeavoring
to sell glass tableware in the United States and Mexico; the impact
of lower duties for imported products; global economic conditions
and the related impact on consumer spending levels; major slowdowns
in the retail, travel or entertainment industries in the United
States, Canada, Mexico, Western Europe and Asia, caused by
terrorist attacks or otherwise; significant increases in per-unit
costs for natural gas, electricity, corrugated packaging, and other
purchased materials; higher indebtedness related to the Crisa
acquisition; higher interest rates that increase the Company's
borrowing costs or volatility in the financial markets that could
constrain liquidity and credit availability; protracted work
stoppages related to collective bargaining agreements; increases in
expense associated with higher medical costs, increased pension
expense associated with lower returns on pension investments and
increased pension obligations; devaluations and other major
currency fluctuations relative to the U.S. dollar and the Euro that
could reduce the cost competitiveness of the Company's products
compared to foreign competition; the effect of high inflation in
Mexico and exchange rate changes to the value of the Mexican peso
and the earnings and cash flow of Crisa, expressed under U.S. GAAP;
the inability to achieve savings and profit improvements at
targeted levels in the Company's operations or within the intended
time periods; and whether the Company completes any significant
acquisition and whether such acquisitions can operate profitably.
Any forward-looking statements speak only as of the date of this
press release, and the Company assumes no obligation to update or
revise any forward-looking statement to reflect events or
circumstances arising after the date of this press release.
DATASOURCE: Libbey Inc. CONTACT: Kenneth Boerger, VP/Treasurer,
+1-419-325-2279, Greg Geswein, VP/Chief Financial Officer,
+1-419-325-2451, both of Libbey Inc. Web Site:
http://www.libbey.com/
Copyright