HOUSTON, May 23, 2016 /PRNewswire/ -- CARBO Ceramics
Inc. (NYSE: CRR) announced today that it has placed $25 million of 7% unsecured subordinated notes
with two members of its Board of Directors. The notes will
mature on April 1, 2019 and require
semi-annual interest payments.
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Gary Kolstad, President and CEO,
said, "Building on our recently amended credit facility, we
continue to execute on our plan to bolster our cash reserves.
We welcome the $25 million of debt on
attractive terms and appreciate the commitment and confidence in
the Company shown by the two Directors. This cash infusion
provides valuable financial flexibility at this point in the
cycle."
In addition, the Company announced that it has filed a shelf
registration statement on Form S-3 with the Securities and Exchange
Commission (SEC). Once the shelf registration is declared
effective by the SEC, it will permit the Company to offer and sell
up to $300 million of various debt and equity securities
from time to time and through various methods of
distribution. As of the date of this release, the Company has
no specific plans to offer the securities covered by the
registration statement, and is under no obligation to offer the
securities in the future.
"We continue to explore avenues to strengthen the balance sheet,
including the potential for monetization of certain assets.
The filing of our shelf registration statement positions us to
access the capital markets on terms acceptable to us in the future,
if the need arises," Mr. Kolstad concluded.
A registration statement relating to the $300 million of securities referred to above has
been filed with the SEC but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior
to the time that the registration statement becomes effective. This
news release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any offer or
sale of these securities in any state or jurisdiction in which an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction. Any offer of the securities will be solely by means
of the prospectus included in the registration statement and one or
more prospectus supplements that will be issued at the time of the
offering.
About CARBO
CARBO focuses on integrating technologies to produce engineered
solutions in its Design, Build, and Optimize the
Frac® technology businesses, delivering
important value to E&P operators by increasing well production
and EUR. For more information, please visit
www.carboceramics.com.
Investor Contact:
Mark
Thomas, Director, Investor Relations
(281) 921-6400
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SOURCE CARBO Ceramics Inc.