Ferroglobe Announces Discussions with Ad Hoc Group of Noteholders and Key Financial Partners
February 01 2021 - 9:00AM
On November 25, 2020 Ferroglobe PLC (the “Company”) entered
into confidentiality agreements (the “Confidentiality Agreements”)
with certain holders (the “Ad Hoc Group of Noteholders”) of the
9.375% Senior Notes due 2022 (the “Notes”) issued by the Company
and Globe Specialty Metals, Inc., to facilitate discussions
addressing the maturity of the Notes and the introduction of
further capital to the Company. In connection with the
discussions, the investor presentation posted on the Company
website, www.ferroglobe.com, was provided to the Ad Hoc Group of
Noteholders. The discussions with the Ad Hoc Group of
Noteholders have been constructive and the Company is aiming to
conclude them shortly. The key highlights of the potential
financing arrangements being discussed between the AHG and the
Company are as follows:
- A major recapitalization of the business with $100 million of
additional liquidity which guarantees sufficient funding to
implement the Company’s strategic plan
- $60 million of new super senior notes provided by existing
Noteholders
- $40 million of new equity funding
- Significant extension of the Company’s debt maturity profile as
a result of a par exchange of the Notes with new senior secured
notes with a 5 year tenor
- Equity allocation of 3.75% to all supporting holders of the
Notes facilitating greater alignment of all stakeholders with
management on strategy and long-term value creation
Please see the presentation for more details on the proposed
transaction. The Company is negotiating with key stakeholders,
including its largest shareholder Grupo Villar Mir, S.A.U., the
injection of equity that is required to implement the proposed plan
and is aiming to enter into a binding agreement with the Ad Hoc
Group of Noteholders and equity providers reflecting the outcome of
the discussions as soon as possible (although no assurance can be
made that the discussions will be successful or that the new
funding will be implemented).
Marco Levi, the Chief Executive Officer of Ferroglobe,
commented: “Today’s announcement marks an important milestone for
the Company. The contemplated financings offer Ferroglobe a
stronger balance sheet and incremental capital which, in turn,
provide a sound foundation for transforming the Company. The
positive dialogue we are having with the financing parties is also
an important validation of the turnaround plan we have set forth
for Ferroglobe, and demonstrates the confidence of the financial
community in our strategy and ability to create value for all
stakeholders. We certainly look forward to maintaining this
momentum and moving swiftly towards agreeing the final terms of the
proposed financings.”
Beatriz García-Cos Muntañola, the Chief Financial Officer of
Ferroglobe, commented: “As we have highlighted for some time, the
Company has been diligently evaluating various refinancing options
to address its senior notes, alongside raising incremental capital.
We thank the efforts of the Ad Hoc Group of Noteholders, along with
potential new financing partners, for their constructive dialogue
of the past few months. Collectively we are working towards a
comprehensive financing that eliminates near-term refinancing
risks, providing greater operational flexibility, and secures cash
for the implementation of our plan. We are focused on quickly
advancing the discussion to the next phase and will provide the
market with an update in due course.”
About Ferroglobe
Ferroglobe is one of the world’s leading suppliers of silicon
metal, silicon-based and manganese-based specialty alloys and
ferroalloys, serving a customer base across the globe in dynamic
and fast-growing end markets, such as solar, automotive, consumer
products, construction and energy. For more information, visit
http://investor.ferroglobe.com.
Forward-Looking Statements
This release contains “forward-looking statements” within the
meaning of U.S. securities laws. Forward-looking statements are not
historical facts but are based on certain assumptions of management
and describe Ferroglobe’s future plans, strategies and
expectations. Forward-looking statements often use forward-looking
terminology, including words such as “anticipate”, “believe”,
“could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”,
“likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “will”
and words of similar meaning or the negative thereof.
Forward-looking statements contained in this
press release are based on information currently available to
Ferroglobe and assumptions that management believe to be reasonable
but are inherently uncertain. As a result, Ferroglobe’s actual
results, performance or achievements may differ materially from
those expressed or implied by these forward-looking statements,
which are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors that are, in
some cases, beyond Ferroglobe’s control.
All information in this press release is as of
the date of its release. Ferroglobe does not undertake any
obligation to update publicly any of the forward- looking
statements contained herein to reflect new information, events or
circumstances arising after the date of this press release. You
should not place undue reliance on any forward-looking statements,
which are made only as of the date of this press release.
INVESTOR CONTACT:Gaurav MehtaExecutive Vice
President - Investor
Relationsinvestor.relations@ferroglobe.com
MEDIA CONTACT:Cristina Feliu RoigExecutive
Director – Communications & Public
Affairscorporate.comms@ferroglobe.com
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