Accuride Corporation (“Accuride” or the “Company”) (NYSE:ACW) –
a leading supplier of components to the North American and European
commercial vehicle industries – today announced that, in connection
with its previously announced cash tender offer (the “Tender
Offer”) for any and all of its outstanding $310.0 million aggregate
principal amount of 9.5% First Priority Senior Secured Notes due
2018 (the “Notes”) and consent solicitation to amend the indenture
under which the Notes were issued (the “Consent Solicitation”), it
had received, as of 5:00 p.m., New York City time, on November 1,
2016 (the “Early Tender Deadline”), as reported by Global
Bondholder Services Corporation, valid tenders and consents from
holders of $234,954,000 in aggregate principal amount of the Notes,
which represents approximately 75.8% of the outstanding aggregate
principal amount of the Notes (CUSIP No. 00439TAE7). Full details
of the terms and conditions of the Tender Offer and Consent
Solicitation are set forth in Accuride’s Offer to Purchase and
Consent Solicitation Statement (the “Offer to Purchase”), dated
October 19, 2016.
The Tender Offer is scheduled to expire at 12:00 Midnight, New
York City time, at the end of the day on November 16, 2016, unless
such deadline is extended or earlier terminated by the Company in
its sole discretion (such time and date, as the same may be
extended, the “Expiration Time”). Withdrawal rights for the tender
offer and consent solicitation expired at 5:00 p.m., New York City
time, on November 1, 2016 (the "Withdrawal Deadline"). Tenders of
Notes may not be withdrawn after the Withdrawal Deadline, unless
required by applicable law.
The consents received from holders of Notes (the “Consents”)
exceeded the amount needed to adopt the proposed amendments to the
indenture dated July 29, 2010 governing the Notes (the
"Indenture"). Accordingly, the Company executed a supplemental
indenture to the Indenture (the "Supplemental Indenture") that,
among other things, eliminates substantially all of the restrictive
covenants (other than, among other covenants, the covenant to pay
interest and premium, if any, on and principal of, the Notes when
due) and certain events of default applicable to the Notes (the
“Proposed Amendments”). Pursuant to the terms of the Supplemental
Indenture, the Proposed Amendments will become operative only upon
the purchase by the Company of at least a majority in principal
amount of the outstanding Notes on the Payment Date (as defined
below) pursuant to the Tender Offer.
Under the terms of the Tender Offer, the total consideration for
each $1,000 principal amount of the Notes validly tendered and not
validly withdrawn at or before the Early Tender Deadline and
accepted for purchase will be $1,006.25 (the “Total
Consideration”). The Total Consideration for the Notes includes an
early tender payment of $30.00 per $1,000 principal amount of the
Notes (the “Early Tender Payment”), and is only payable to holders
who tendered their Notes and delivered their Consents at or before
the Early Tender Deadline. Holders who validly tender their Notes
and deliver their Consents after the Early Tender Deadline and at
or before the Expiration Time will receive the Total Consideration
less the Early Tender Payment, or $976.25 per $1,000 principal
amount of the Notes (the “Tender Offer Consideration”).
Payment of the Total Consideration or the Tender Offer
Consideration, as applicable, for any Notes validly tendered and
not validly withdrawn will be made promptly following the
Expiration Time (the “Payment Date”). Accuride will also pay
accrued and unpaid interest due on the Notes from the last interest
payment date on the Notes to, but not including, the Payment
Date.
Accuride’s obligation to accept for purchase and pay the Total
Consideration or the Tender Offer Consideration, as applicable, for
validly tendered Notes is conditioned upon the satisfaction of
certain conditions, including (i) the consummation of the merger
transaction between the Company, Armor Parent Corp., a Delaware
corporation (“Parent”), and Armor Merger Sub Corp., a Delaware
corporation and a wholly owned subsidiary of Parent (“Merger Sub”),
pursuant to and in accordance with the terms of the Agreement and
Plan of Merger (the "Merger Agreement"), dated September 2, 2016,
by and among the Company, Parent and Merger Sub, pursuant to which
Merger Sub will merge with and into Accuride and (ii) the issuance
of indebtedness by the Company having an aggregate principal amount
(including availability of revolving commitments) of not less than
$300.0 million.
Accuride has retained RBC Capital Markets, LLC as the dealer
manager and solicitation agent (the “Dealer Manager”) for the
Tender Offer and Consent Solicitation. Accuride has retained Global
Bondholder Services Corporation as information agent and tender
agent (the “Information Agent”) for the Tender Offer and Consent
Solicitation. Persons with questions regarding the Tender Offer or
Consent Solicitation should contact RBC Capital Markets, LLC at
(877) 381-2099 (toll free) or (212) 618-7822 (collect). Requests
for documents may be directed to Global Bondholder Services
Corporation by phone at (866) 470-3900 (toll free) or (212)
430-3774, or in writing at 65 Broadway, Suite 404, New York, New
York 10006. The Offer to Purchase also addresses certain U.S.
federal income tax considerations. Holders should seek their own
advice based on their particular circumstances from an independent
tax advisor.
None of Accuride, the Dealer Manager, the Information Agent, the
trustee for the Notes or any of their respective affiliates makes
any recommendation as to whether holders of Notes should tender
Notes in response to the Tender Offer and deliver Consents in
response to the Consent Solicitation, and no one has been
authorized to make such recommendation. Each holder must make his,
her or its own decision as to whether to tender Notes and deliver
Consents and, if so, the principal amount of Notes to tender and
Consents to deliver.
This press release is for informational purposes only and is not
an offer to buy, a solicitation of an offer to sell the Notes or
any other security or a solicitation of Consents with respect to
any of the Notes. The Tender Offer and Consent Solicitation are
being made solely by the Offer to Purchase. In any jurisdiction
where the laws require the Tender Offer and Consent Solicitation to
be made by a licensed broker or dealer, they will be deemed made on
behalf of Accuride by RBC Capital Markets, LLC or by one or more
registered brokers or dealers under the laws of such jurisdiction.
The Tender Offer and Consent Solicitation are not being made
directly or indirectly to any resident or person located in any
jurisdiction in which the making and acceptance thereof would not
be in compliance with the securities, blue sky or other laws of
such jurisdiction.
About Accuride Corporation
With headquarters in Evansville, Ind., USA, Accuride Corporation
is a leading supplier of components to the North American and
European commercial vehicle industries. The company’s products
include commercial vehicle wheels and wheel-end components and
assemblies. The company’s products are marketed under its brand
names, which include Accuride®, Accuride Wheel End Solutions™,
Gunite® and Gianetti Ruote™. Accuride’s common stock trades on the
New York Stock Exchange under the ticker symbol ACW. For more
information: www.AccurideCorp.com.
Forward-Looking Statements
Certain statements contained in this document may be considered
forward-looking statements within the meaning of the U.S.
securities laws, including Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, including statements regarding the proposed
merger contemplated by the Merger Agreement (the “proposed merger
transaction”) and the ability to consummate the proposed merger
transaction. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date they
are made. Actual results could differ materially from those
contained in any forward-looking statement as a result of various
factors, including, without limitation: (1) Accuride may be unable
to obtain shareholder approval for the proposed merger transaction;
(2) the conditions to the closing of the proposed merger
transaction may not be satisfied and required regulatory approvals
may not be obtained; (3) the proposed merger transaction may
involve unexpected costs, liabilities or delays; (4) the business
of Accuride may suffer as a result of uncertainty surrounding the
proposed merger transaction; (5) the outcome of any legal
proceedings related to the proposed merger transaction; (6)
Accuride may be adversely affected by other economic, business,
legislative, regulatory and/or competitive factors; (7) the
occurrence of any event, change or other circumstances that could
give rise to the termination of the Merger Agreement; (8) risks
that the proposed merger transaction disrupts current plans and
operations and the potential difficulties in employee retention as
a result of the proposed merger transaction; (9) the failure by
Parent or Merger Sub to obtain the necessary debt and equity
financing arrangements set forth in the commitment letters received
in connection with the proposed merger transaction; and (10) other
risks to consummation of the proposed merger transaction, including
the risk that the proposed merger transaction will not be
consummated within the expected time period or at all. If the
proposed merger transaction is consummated, Accuride’s shareholders
will cease to have any equity interest in Accuride and will have no
right to participate in its earnings and future growth. The
foregoing review of important factors that could cause actual
results to differ from expectations should not be construed as
exhaustive and should be read in conjunction with statements that
are included herein and elsewhere, including Accuride’s filings
with the Securities and Exchange Commission (the “SEC”), including
its Annual Report on Form 10-K for the year ended December 31,
2015, the annual proxy statement for its 2016 Annual Meeting of
Stockholders, the definitive proxy statement filed in connection
with the proposed merger transaction and recent Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K filed with the SEC,
which are available on the SEC’s website at www.sec.gov.
Except as required by applicable law, Accuride undertakes no
obligation to update any forward-looking statement, or to make any
other forward-looking statements, whether as a result of new
information, future events or otherwise. Accuride does not intend,
and assumes no obligation, to update any forward-looking
statements. Accuride’s filings with the SEC, including its Annual
Report on Form 10-K for the year ended December 31, 2015, the
annual proxy statement for its 2016 Annual Meeting of Stockholders,
the definitive proxy statement filed in connection with the
proposed merger transaction and recent Quarterly Reports on Form
10-Q and Current Reports on Form 8-K filed with the SEC, are
available on the SEC’s website at www.sec.gov.
Important Additional Information
In connection with the proposed merger transaction, on October
17, 2016, the Company filed with the SEC and sent to its
stockholders a definitive proxy statement. INVESTORS OF THE COMPANY
ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT
MATERIALS CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN
IMPORTANT INFORMATION ABOUT THE COMPANY, PARENT, MERGER SUB AND THE
PROPOSED MERGER TRANSACTION. Investors may obtain a free copy of
these materials and other documents filed by the Company with the
SEC at the SEC’s website at www.sec.gov, at the Company’s website
at www.accuridecorp.com or by sending a written request to the
Company at 7140 Office Circle, Evansville, Indiana 47715,
Attention: General Counsel and Corporate Secretary.
Participants in the Solicitation
The Company and its directors, executive officers and certain
other members of management and employees may be deemed to be
participants in soliciting proxies from its stockholders in
connection with the proposed merger transaction. Information
regarding the persons who may, under the rules of the SEC, be
considered to be participants in the solicitation of the Company’s
stockholders in connection with the proposed merger transaction, as
well as any direct or indirect interests such persons may have in
the proposed merger transaction, is set forth in the annual proxy
statement for the Company’s 2016 Annual Meeting of Stockholders and
the definitive proxy statement filed in connection with the
proposed merger transaction.
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version on businesswire.com: http://www.businesswire.com/news/home/20161102005829/en/
Accuride CorporationMedia Relations:Timothy G. Weir, APR,
812-962-5128Director of Public Affairs, Communications &
Marketingtweir@accuridecorp.comorInvestor Relations:Todd
Taylor, 812-962-5105Vice President and
Treasurerttaylor@accuridecorp.com
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