Proposed New ABL Credit Facility
Following the completion of the offering of the New Notes, Edgen Group expects to enter into a new global asset-backed revolving credit facility to replace its two existing senior secured asset-backed revolving credit facilities. Edgen Group expects that the new credit facility will be a multi-currency facility with sublimits available to its subsidiaries in the United States and certain foreign countries. The proposed new facility is currently under discussion with potential financing sources. The terms of the new credit facility described above may change and such changes may be significant. There can be no assurance that Edgen Group will be able to enter into the new credit facility on terms satisfactory to it or at all.
Updated 2012 Outlook
In conjunction with the proposed refinancing plans, Edgen Group has revised its previously announced fiscal year 2012 Adjusted EBITDA guidance. Edgen Group currently expects its fiscal year 2012 Adjusted EBITDA to be in the range of $146 million to $156 million (an estimated increase from fiscal year 2011 Adjusted EBITDA of 16% to 24%), compared to previous expectations of $154 million to $162 million. This update in Adjusted EBITDA guidance is attributable to market conditions in Europe, Middle East and Africa (EMEA) within Edgen Group’s E&I Segment. Based on current market conditions and customer business levels, Edgen Group is not updating its fiscal year 2012 revenue guidance of $1.9 billion to $2.1 billion. Actual results could fall outside the Adjusted EBITDA ranges presented in our guidance. The expected range of Adjusted EBITDA and the assumptions underlying this range are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks. Accordingly, you should not place undue reliance on this guidance.About Edgen Group Edgen Group is a leading global distributor of specialized steel products and services to the energy and industrial infrastructure markets, including steel pipe, valves, quenched and tempered and high yield heavy plate and related components. Edgen Group is headquartered in Baton Rouge, Louisiana.