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TheStreet Open House

Libbey Closes $450 Million Private Placement Of Senior Secured Notes

Stock quotes in this article: LBY

TOLEDO, Ohio, May 18, 2012 /PRNewswire/ -- Libbey Inc. (NYSE MKT: LBY) ("Libbey" or "Company") announced today that its wholly owned subsidiary Libbey Glass Inc. (" Libbey Glass") has completed its previously announced private placement of $450 million aggregate principal amount of 6.875% senior secured notes due 2020 (the "Notes").  The Notes were offered to qualified institutional buyers pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act").

Libbey Glass used a portion of the net proceeds of the notes offering to purchase $316,332,000 in aggregate principal amount of Libbey Glass' 10% Senior Secured Notes due 2015 (the "Existing Notes") under the previously announced tender offer (the "Tender Offer").  Additionally, Libbey Glass  intends to use the remaining net proceeds of the notes offering, cash on hand and drawings under the Amended and Restated Senior Secured Credit Agreement to finance the purchase of up to an additional $3,668,000 of the Existing Notes pursuant to the Tender Offer; to contribute $79.7 million to the U.S. pension plans to fully fund the Company's target obligations under ERISA; to redeem $40.0 million in aggregate principal amount of the Existing Notes that remain outstanding following the consummation of the Tender Offer at a redemption price of 103%, plus any applicable accrued and unpaid interest; and to pay related fees and expenses.

The Notes, the Libbey guarantee of the Notes and the subsidiary guarantees of the Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements.

The Company also announced today the execution of  an amendment to the Company's existing Senior Secured Credit Agreement. The amendment to the Amended and Restated Senior Secured Credit Agreement will extend the term of the revolving facility, increase the amount of the "accordion" feature from $10.0 million to $25.0 million, reduce the applicable margin under the first level of the pricing grid and modify certain negative covenants contained in the agreement.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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