.gif?width=220&height=200&mediaprotectionhash=b13da841472e6e7ed500ee35df2a350aaf53d75246118b33ea2095cc7e9a3fc4&ext=.gif)
Horsehead Prices Offering of Convertible Notes
07/25/2011 - Horsehead Holding Corp. has priced its offering of $80,000,000 aggregate principal amount of its convertible senior notes due 2017 in a private placement.
Horsehead Holding Corp. has priced its offering of $80,000,000 aggregate principal amount of its convertible senior notes due 2017 in a private placement.
The company said it will use proceeds from the offering, together with cash on hand, for the initial stages of construction of a new zinc facility. Funds will also be used for general corporate purposes, including working capital needs, investment in business initiatives, capital expenditures and acquisitions.
The company also granted initial purchasers of the convertible notes a 30-day option to purchase up to an additional $20,000,000 aggregate principal amount of convertible notes.
The convertible notes, which will pay interest semiannually at a rate of 3.8% per annum, will be convertible into shares of the company’s common stock, cash, or a combination of shares of the company’s common stock and cash, at the company’s election, at an initial conversion rate of 66.6667 shares of the company’s common stock per $1,000 principal amount of the convertible notes. This is equivalent to an initial conversion price of approximately $15.00 per share of common stock, subject to adjustment in certain circumstances.
The company anticipates that the closing of the offering will take place on or about July 27, 2011, subject to customary closing conditions.
Horsehead Holding Corp. is the parent company of Horsehead Corp., a U.S. producer of specialty zinc and zinc-based products and a recycler of electric arc furnace dust, and The International Metals Reclamation Co., a recycler of metals-bearing wastes and a processor of nickel-cadmium batteries in North America. Headquartered in Pittsburgh, the company employs approximately 1100 people and currently has six facilities located in four states throughout the United States.
