PALM BEACH GARDENS, Florida,
April 29, 2017 /PRNewswire/
-- Sequa Corporation ("Sequa" or the "Company") today
announced the completion of a comprehensive recapitalization that
includes the issuance of new first and second lien term loans and
significant new equity investments by affiliates of The Carlyle
Group ("Carlyle") and other existing noteholders. Proceeds
from the new term loans and equity investment will be used to repay
Sequa's existing term loans and provide capital to support the
company's growth plan.
In addition, Sequa announced the early settlement of an exchange
offer (the "Exchange Offer") for its Senior Unsecured Notes due
December 2017 (the "Notes") pursuant
to which certain holders, including affiliates of Carlyle and other
existing noteholders, exchanged their Notes for newly issued
convertible PIK preferred stock. The combination of the new
term loans, the Exchange Offer and the new equity investment
combine to significantly reduce Sequa's financial leverage and
replace its maturing debt with a new, long-term capital
structure.
"We are pleased to complete this successful refinancing as well
as the important new investment in the Company," said Tom Mepham, Sequa's Chief Executive
Officer. "These transactions combine to significantly improve
our capital structure, deleverage our business and leave us well
positioned for the future. We look forward to continuing our
strong partnership with Carlyle and the other preferred equity
holders, and we look forward to working together to take Sequa to
the next level of growth."
Following the transaction, Carlyle continues to hold a majority
of Sequa's voting securities.
Adam Palmer, Carlyle Managing
Director and Global Head of Aerospace, Defense and Government
Services, said, "The successful completion of this recapitalization
is a significant step in positioning Sequa for long term
success. Under Tom Mepham and the leadership team, the
improvement in Sequa's operations and performance over the past
year has been tremendous. We are excited about the Company's
prospects and look forward to continuing to support Sequa in the
years ahead."
About Sequa Corporation
Sequa Corporation is a
diversified industrial company with operations in the aerospace,
energy and metal coatings industries through its Chromalloy and
Precoat Metals business units. Chromalloy provides the airline
industry with a broad range of aftermarket services and ranks as
the leading independent supplier of advanced repairs for jet engine
parts. Chromalloy operates around the world and around the clock,
providing airlines with timely, cost-effective, and proven repairs
for turbine airfoils and other critical engine parts - repairs that
extend the life of the parts and drive down airline maintenance
costs. Chromalloy also serves the industrial and marine gas turbine
market, as well as the military market. Precoat Metals, the
largest independent metal coil coater in North America, provides speedy, dependable
service and the highest standard of quality to a broad range of
industrial customers. A leader in the application of decorative and
protective coatings to continuous coiled steel for use in
commercial and residential construction projects, Precoat also
serves an expanding roster of other industrial end users. For
additional information, visit www.sequa.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset
manager with $158 billion of assets
under management across 281 investment vehicles as of December 31, 2016. Carlyle's purpose is to invest
wisely and create value on behalf of its investors, many of whom
are public pensions. Carlyle invests across four segments –
Corporate Private Equity, Real Assets, Global Market Strategies and
Investment Solutions – in Africa,
Asia, Australia, Europe, the Middle
East, North America and
South America. Carlyle has
expertise in various industries, including: aerospace, defense and
government services, consumer and retail, energy, financial
services, healthcare, industrial, real estate, technology and
business services, telecommunications and media, and
transportation. The Carlyle Group employs more than 1,600 people in
35 offices across six continents. For more information, please
visit www.carlyle.com.
Media Contact:
Brian
Costa
bcosta@chromalloy.com
+1 561.254.0495