Rain Carbon Inc. announces intention to raise new senior secured credit facilities, comprising of a €390.0 million term loan B facility and a $150.0 million revolving credit facility
STAMFORD, Conn., Nov. 24, 2017
STAMFORD, Conn., Nov. 24, 2017 /PRNewswire/ – Rain Carbon Inc. (“RCI“) announced today its intention to raise new senior secured credit facilities, comprising of a €390.0 million term loan B facility (the “New Term Loan B Facility“) and a $150.0 million revolving credit facility (the “New Revolving Credit Facility“, and together the New Term Loan B Facility, the “New Senior Credit Facilities“). RCI intends to use the proceeds of the New Term Loan B Facility to finance the redemption of Rain CII Carbon LLC’s (“RCC“) outstanding 8.25% U.S. dollar-denominated Senior Secured Notes due 2021 and RCC’s outstanding 8.50% Euro-denominated Senior Secured Notes due 2021 (the “RCC Notes“). RCI also intends to use cash on hand to redeem a portion of the outstanding RCC Notes. The New Revolving Credit Facility will replace RCI’s existing revolving credit facility, and is expected to be undrawn on the closing date of the New Senior Credit Facilities.
The consummation and actual terms of the New Senior Credit Facilities are subject to a number of factors, including market conditions, negotiation and execution of definitive documents and satisfaction of customary closing conditions. The terms of the New Senior Credit Facilities could differ materially from those outlined above and there can be no assurance that RCI will enter into the New Senior Credit Facilities or that RCI will redeem the RCC Notes. Any notices of redemption that RCC submits with respect to the RCC Notes will be conditional upon the consummation of the New Senior Credit Facilities and the raising of an amount under the New Term Loan B Facility that is sufficient to fund the redemption of the RCC Notes.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the RCC Notes or any other loans or securities.
RCI is a leading vertically integrated global producer of a diversified portfolio of carbon-based and chemical products that are essential raw materials for staples of everyday life. RCI operates in two business segments: carbon and chemicals. RCI’s carbon business segment converts the by-products of oil refining and steel production into high-value carbon-based products that are critical raw materials for the aluminum, graphite, carbon black, wood preservation, titanium dioxide, refractory and several other global industries. RCI’s chemicals business segment extends the value chain of its carbon processing through the downstream refining of a portion of this output into high-value chemical products that are critical raw materials for the specialty chemicals, coatings, construction, petroleum and several other global industries. RCI has longstanding relationships with most of its major customers, including several of the largest companies in the global aluminum, graphite and specialty chemicals industries, and with most of its major raw material suppliers, including several of the world’s largest oil refiners and steel producers. RCI’s scale and process sophistication provides it the flexibility to capitalize on market opportunities by selecting from a wide range of raw materials, adjusting the composition of its product mix and producing products that meet exacting customer specifications, including several specialty products. RCI’s production facility locations and integrated global logistics network also strategically position it to capitalize on market opportunities by addressing raw material supply and product demand on a global basis in both established and emerging markets.
The information contained in this announcement may contain forward-looking statements, estimates and projections. These statements involve elements of subjective judgment and analysis and are based upon the best judgment of RCI as of the date of this announcement. These statements are subject to change without notice and are based on a number of assumptions and entail known and unknown risks and uncertainties, as there are a variety of factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Therefore, you should not rely on these forward-looking statements. Neither RCI nor any other person gives any undertaking, or is under any obligation, to update these forward-looking statements for events or circumstances that occur subsequent to the date of this announcement or to update or keep current any of the information contained herein and this announcement is not a representation by RCI or any other person that they will do so, except to the extent required by law.
Contact: Ryan Tayman, VP Finance and Investor Relations
Phone: (203) 517-2822
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SOURCE Rain Carbon Inc.