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AMCOL International Corporation Message Board

  • steve_382 steve_382 May 2, 2010 9:32 AM Flag

    $50 Million Note Sale

    Wonder if they are just cleaning up the balance sheet or if they have plans for these funds. Not a bad rate (5%), I suppose if you need the money for something. Maybe they are just rolling over some other long term debt.



    On April 29, 2010, AMCOL International Corporation (the “Company”) issued and sold an aggregate of $50 million of its senior notes (the “Notes”) to qualified institutional buyers pursuant to a note purchase agreement dated as of the same date (the “Note Purchase Agreement”).

    The unpaid principal amount of the Notes bears interest at a fixed annual rate of 5.46%, payable semi-annually in arrears on April 29th and October 29th of each year, beginning October 29, 2010. The principal amount of the Notes is due at maturity on April 29, 2020, subject to acceleration upon an event of default.

    The Note Purchase Agreement provides for customary events of default that include (subject in certain cases to customary grace and cure periods) nonpayment of principal, interest or make-whole amounts, breach of covenants or other agreements in the Note Purchase Agreement and certain events of bankruptcy or insolvency. Generally, if an event of default occurs, the holder may accelerate payment of the Notes. The Notes will accelerate automatically
    if certain events of bankruptcy or insolvency occur.

    The obligations of the Company under the Note Purchase Agreement are guaranteed by certain subsidiaries of the Company.

    The Note Purchase Agreement, including the form of Notes, is filed as Exhibit 10.1 to this Current Report on Form 8-K. The foregoing description is qualified in its entirety by reference to the full text of the Note Purchase Agreement.