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Magellan Aerospace Corporation announces entering into an amended credit agreement, completion of previously announced financing arrangements and offer to purchase 8.5% convertible unsecured debentures
TORONTO, April 30 /CNW/ - Magellan Aerospace Corporation ("Magellan" or the "Corporation") announ...
About this update from Magellan Aerospace Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, April 30 /CNW/ - Magellan Aerospace Corporation ("Magellan" or\nthe "Corporation") announces that it has amended its credit agreement with its\nexisting lenders on terms satisfactory to its Board of Directors and has\ncompleted the financing arrangements previously announced on February 4, 2009\nand March 27, 2009.\n\n\nUnder the terms of the amended agreement, Magellan and the lenders have\nagreed that the maximum amount available under the operating credit facility\nwill be decreased by Cdn. $5 million and U.S. $5 million to approximately Cdn.\n$195 million and the maturity date will be extended to May 22, 2010 subject to\nthe completion of the transactions set forth below. The facility is extendible\nfor unlimited one-year renewal periods, subject to mutual consent of the\nsyndicate of lenders and the Corporation, and continues to be fully guaranteed\nuntil May 22, 2010 by Mr. Edwards, the Chairman of the Board of the\nCorporation, in consideration of the continued payment by the Corporation of\nan annual fee payable monthly equal to 1.35% of the loan amount.\n\n\nIn addition, the following previously announced financing arrangements\nhave been completed:\n\n\n(a) the purchase by Mr. Edwards, directly or indirectly, of $40 million\n principal amount of a new issue of 10% Convertible Secured\n Subordinated Debentures (the "New Convertible Debentures") with a\n three year term by private placement; and\n\n(b) the extension and restatement of a previous secured subordinated loan\n from Edco Capital Corporation ("Edco"), which is wholly owned by Mr.\n Edwards, to the Corporation and to increase the principal amount of\n $50 million to $65 million and to extend the loan to July 1, 2010 in\n consideration of the payment of a one time fee to Edco equal to 1% of\n the principal amount of $50 million outstanding and an increase in\n the interest rate on the loan from 10% to 12% per annum payable\n monthly in arrears.\n\n(together the "2009 Financing Arrangements")\n\n\nAs a result of a requirement under a change of control provision in the\npreviously issued 8.5% convertible unsecured debentures due January 31, 2010\n(the "2008 Debentures"), the Corporation will immediately make an offer to\npurchase the 2008 Debentures at a price of 102.5% of the principal a...