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Edgen Group Announces Proposed Refinancing Plans And Updated 2012 Guidance

Stocks in this article: EDG

Edgen Group Inc. (“Edgen Group”) (NYSE: EDG), a leading global distributor of specialized products including steel pipe, valves, plate, and related components to the energy and industrial markets, today announced proposed refinancing plans and in connection with this announcement is updating its guidance for the full 2012 fiscal year. Edgen Group’s refinancing plans include the repurchase or retirement of all of its existing 12¼% senior secured notes due 2015, the repayment in full of a note payable due 2019, a proposed offering of new senior secured notes due 2020 and a new multi-currency global asset-backed revolving credit facility to replace its two existing senior revolving credit facilities.

Proposed Offering of New Senior Secured Notes

As part of its refinancing plans, Edgen Group’s indirect subsidiary, Edgen Murray Corporation (“EMC”), intends to offer, subject to market and other conditions, $575.0 million aggregate principal amount of senior secured notes due 2020 (the “New Notes”) in a private offering.

The New Notes are expected to be guaranteed on a senior secured basis by all of the existing and certain future domestic restricted subsidiaries of Edgen Group. The New Notes and related guarantees are expected to be secured on a first priority basis by substantially all of EMC’s and the guarantors’ current and future property and assets (other than the collateral securing Edgen Group’s asset-backed credit facilities and certain other assets), and on a second priority basis by the collateral that secures Edgen Group’s asset-backed credit facilities on a first priority basis. The offering price, interest rate and other terms of the New Notes will be determined by negotiations between EMC and the initial purchasers and there can be no assurance that the New Notes offering will be consummated on terms satisfactory to Edgen Group or at all.

Edgen Group intends to use all of the net proceeds from the offering, together with borrowings under one of its asset-backed credit facilities, to repurchase or retire all of EMC’s outstanding $465 million aggregate principal amount of 12¼% Senior Secured Notes due 2015 (the “Existing Notes”) (including the payment of premiums, consent fees, accrued interest and other fees and expenses associated with such repayment) and to repay all of the amount outstanding under a note payable previously issued to the former owner of one of Edgen Group’s predecessor companies. Any remaining net proceeds would be used for general corporate purposes.

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