Horsehead Holding Corp. (the “ Company”) (Nasdaq: ZINC) announced today the pricing of the $175,000,000 aggregate principal amount of its 10.50% Senior Secured Notes due 2017 (collectively, the “ Notes”), at an issue price of 98.188% of par, with a yield to maturity of 11.000%. The Company intends to use a portion of the proceeds from the Notes, together with cash on hand, to pay for the completion of the construction of the Company’s new zinc facility in Rutherford County, North Carolina, and the remainder for general corporate purposes, including working capital needs, investment in other business initiatives and other capital expenditures. The Company anticipates that the closing of the private offering will take place on or about July 26, 2012, subject to customary closing conditions.
The Notes will pay interest semiannually at a rate of 10.50% per annum. The Notes will be the senior secured obligations of the Company and will be fully and unconditionally guaranteed, on a senior secured basis, by the Company’s existing and future domestic restricted subsidiaries, other than certain excluded subsidiaries.
The Notes and related guarantees are being offered only to “qualified institutional buyers” in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the “ Securities Act”) and to persons outside of the United States in compliance with Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities and foreign securities laws.
This press release is for informational purposes only and shall not constitute an offer to sell nor the solicitation of an offer to buy the Notes or any other securities. The Notes offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful.
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