July 4, 2019: Exide Technologies announced on June 26 it had completed a ‘comprehensive new financing and recapitalization’.
The financing round was to “significantly improve Exide’s financial position, allowing for further growth and continued reinvestment in our business,” chairman and CEO Tim Vargo said.
The company said it had issued $150 million new international notes through a new subsidiary, Exide International, with net proceeds of around $125 million; converted $175 million of exiting second lien notes to equity; extended first lien note maturity to 2024 from 2022 in an exchange offer; and extended its ABL credit facility to maturity to July 2021 from January 2020.
The announcement came a week after this bulletin broke the news that Exide Technologies was poised to sell its European business. The firm is still refusing to comment.
“No final decisions have been made and any official announcement will be released only through our corporate communications division,” said one member of staff on condition of anonymity.
Approximately 60% of Exide’s business is based in Europe, where it operates four transportation plants, five industrial plants, three recycling plants and two R&D facilities.