Metalico secures US$ 100 million

Archiv – Ferrous and non-ferrous metal recycler and lead fabricator Metalico Inc says it has entered into a definitive purchase agreement with institutional accredited investors to raise US$ 100 million of gross proceeds in a private placement of 7% notes which are convertible into shares of Metalico’s common stock and warrants which are exercisable for shares of Metalico’s common stock.United States | Ferrous and non-ferrous metal recycler and lead fabricator Metalico Inc says it has entered into a definitive purchase agreement with institutional accredited investors to raise US$ 100 million of gross proceeds in a private placement of 7% notes which are convertible into shares of Metalico’s common stock and warrants which are exercisable for shares of Metalico’s common stock.
In connection with the private placement, teh US company will issue 7% senior convertible notes in the aggregate principal amount of USD 100 million, which notes will be convertible into shares of Metalico’s common stock at an initial conversion price of USD 14.00 per share. The notes will mature in April 2028 and are subject to certain redemption, repurchase and anti dilution rights.
The growing US company takes over a family owned multi yard fully integrated scrap metal recycling operation in Western Pennsylvania. It intends to use approximately US$ 69 million of the net proceeds of the private placement for the purchase of the assets.
The total purchase price for the acquisition is US$ 76 million subject to additional closing adjustments based on the value of the inventory on hand, USD 69 million of which will be paid in cash and USD 7 million of which will be in shares of Metalico’s common stock.