May 18, 2012
(NYSE MKT: LBY)
("Libbey" or "Company")
announced today that its wholly owned subsidiary Libbey Glass Inc. ("
") has completed its previously announced private placement of
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").
used a portion of the net proceeds of the notes offering to purchase
in aggregate principal amount of
' 10% Senior Secured Notes due 2015 (the "Existing Notes") under the previously announced tender offer (the "Tender Offer"). Additionally,
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
of the Existing Notes pursuant to the Tender Offer; to contribute
to the U.S. pension plans to fully fund the Company's target obligations under ERISA; to redeem
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
, 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.