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Magellan Aerospace Corporation announces Officer appointment and provides update on financing for payment of convertible debentures on maturity
TORONTO, Jan. 28 /CNW/ - Magellan Aerospace Corporation ("Magellan" or the "Corporation") is plea...
About this update from Magellan Aerospace Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, Jan. 28 /CNW/ - Magellan Aerospace Corporation ("Magellan" or\nthe "Corporation") is pleased to announce that Mr. James Butyniec has been\nappointed as the President and Chief Executive Officer of Magellan effective\nimmediately. Mr. Butyniec was most recently Magellan's President and Chief\nOperating Officer and has been with the Corporation since 1997 when it\nacquired Bristol Aerospace Limited. Mr. Richard Neill, former Chief Executive\nOfficer of Magellan into 2007, will continue as Vice Chairman of the\nCorporation.\n\n\nMagellan is also providing an update on the status of its proposed\nfinancing arrangements to pay the currently outstanding principal amount of\napproximately $70 million of 8.5% unsecured subordinated debentures (the\n"Existing Debentures") in cash on the maturity date of January 31, 2008. The\nCorporation had previously announced its intention to complete a private\nplacement of up to $35 million aggregate principal amount of 8.5% convertible\nunsecured subordinated debentures due January 31, 2010 (the "New Debentures")\nto fund, in part, the payments on maturity of the Existing Debentures. Edco\nCapital Corporation, a corporation controlled by N. Murray Edwards, Magellan's\nprincipal shareholder, had agreed to, directly or indirectly, loan $50 million\nto the Corporation (the "Original Loan") to fund the repayment of the\nremaining $35 million on the maturity of the Existing Debentures and to\nprovide the Corporation with funds to retire $15 million of subordinated debt.\n\n\nThe Corporation has revised its proposed financing arrangements as it now\nexpects to raise approximately $20 million of aggregate principal amount of\nNew Debentures pursuant to the private placement which includes $17.5 million\nprincipal amount of the New Debentures to be acquired by Mr. Edwards. The\nremaining $50 million needed to fund the repayment on the maturity of the\nExisting Debentures will be paid out of $35 million of the proceeds from the\nOriginal Loan and from the proceeds of a new $15 million loan (the "Bridge\nLoan") from Edco Capital Corporation. The Bridge Loan will be secured and will\nbe repayable on July 31, 2008 and will bear interest at 10% per annum. In\nconsideration for the provision of additional security for the Corporation's\...