Nov 20 2010
Wise Metals Group LLC (the “Company”) today announced the completion of a recapitalization of the company. The refinancing includes a revolving credit line and other long-term financing.
Wells Fargo Capital Finance will continue the lead for the Company’s revolving line of credit financing, with Bank of America also continuing and Regions Bank based in Birmingham, Alabama joining as a new participant in the syndicate. As part of the recap, all the outstanding balances on existing revolving debt and senior secured notes have been repaid.
Term financing was provided by the Retirement System of Alabama (“RSA”).
“This is the culmination of many years of hard work by everyone at Wise,” said David D’Addario, Chairman and Chief Executive Officer. “The company’s operations have continuously improved and become more efficient, and we are still producing the best quality can sheet in the industry. The signing of new long-term contracts was key to this refinancing, and I am deeply appreciative of the loyalty that our customers have shown to Wise. The fact that our existing banks and the RSA were willing to be the lead participants in this recapitalization reflects the confidence that they have in Wise now and for the future.”
In addition to retiring the existing debt, the funds can be used to support and expand operations, including capital expenditures. According to Wesley Oberholzer, Wise’s Executive Vice President and Chief Operating Officer, “These funds will provide the necessary capital to make further operational improvements which will make us still more efficient at fabricating the highest quality product in the safest of environments.”
“The revolving credit line and term loan extends into 2015,” said Ken Stastny, Chief Financial Officer. “This ensures that Wise will have no significant debt maturities in the near term which we see as an important advantage in these financial markets. Wise’s strong financial position will allow for continued capital investments in the capabilities of each of the Wise operating companies, including our operations at Wise Alloys and at Wise Recycling.”
“The RSA has been very pleased with its continuing investment in Wise Metals,” stated Dr. David Bronner, Chief Executive Officer of the RSA. “Since our initial investment in Wise dating back to 2006, we have supported a strong partnership with D’Addario and his team. The many accomplishments made over these past few years will help continue to grow important manufacturing in Alabama.”