Benzinga | Feb 1, 2021 09:16AM EST

Ferroglobe Announces Discussions With Ad Hoc Group Of Noteholders And Key Financial Partners; Highlights Of Potential Agreement Include Recapitalization With $100M Of Additional Liquidity, Extension Of Debt Maturity

LONDON, Feb. 01, 2021 (GLOBE NEWSWIRE) -- On November 25, 2020 Ferroglobe PLC (the "Company") entered into confidentiality agreements (the "Confidentiality Agreements") with certain holders (the "Ad Hoc Group of Noteholders") of the 9.375% Senior Notes due 2022 (the "Notes") issued by the Company and Globe Specialty Metals, Inc., to facilitate discussions addressing the maturity of the Notes and the introduction of further capital to the Company. In connection with the discussions, the investor presentation posted on the Company website, www.ferroglobe.com, was provided to the Ad Hoc Group of Noteholders. The discussions with the Ad Hoc Group of Noteholders have been constructive and the Company is aiming to conclude them shortly. The key highlights of the potential financing arrangements being discussed between the AHG and the Company are as follows:



* A major recapitalization of the business with $100 million of additional liquidity which guarantees sufficient funding to implement the Company's strategic plan $60 million of new super senior notes provided by existing Noteholders $40 million of new equity funding

* Significant extension of the Company's debt maturity profile as a result of a par exchange of the Notes with new senior secured notes with a 5 year tenor

* Equity allocation of 3.75% to all supporting holders of the Notes facilitating greater alignment of all stakeholders with management on strategy and long-term value creation

Please see the presentation for more details on the proposed transaction. The Company is negotiating with key stakeholders, including its largest shareholder Grupo Villar Mir, S.A.U., the injection of equity that is required to implement the proposed plan and is aiming to enter into a binding agreement with the Ad Hoc Group of Noteholders and equity providers reflecting the outcome of the discussions as soon as possible (although no assurance can be made that the discussions will be successful or that the new funding will be implemented).

Marco Levi, the Chief Executive Officer of Ferroglobe, commented: "Today's announcement marks an important milestone for the Company. The contemplated financings offer Ferroglobe a stronger balance sheet and incremental capital which, in turn, provide a sound foundation for transforming the Company. The positive dialogue we are having with the financing parties is also an important validation of the turnaround plan we have set forth for Ferroglobe, and demonstrates the confidence of the financial community in our strategy and ability to create value for all stakeholders. We certainly look forward to maintaining this momentum and moving swiftly towards agreeing the final terms of the proposed financings."

Beatriz Garc?a-Cos Munta?ola, the Chief Financial Officer of Ferroglobe, commented: "As we have highlighted for some time, the Company has been diligently evaluating various refinancing options to address its senior notes, alongside raising incremental capital. We thank the efforts of the Ad Hoc Group of Noteholders, along with potential new financing partners, for their constructive dialogue of the past few months. Collectively we are working towards a comprehensive financing that eliminates near-term refinancing risks, providing greater operational flexibility, and secures cash for the implementation of our plan. We are focused on quickly advancing the discussion to the next phase and will provide the market with an update in due course."