Senior Secured Notes

Jaguar Mining (NYSE:JAG) Closes $100 Million Senior Notes Offering

Filed in Gurupi Project, jaguar-mining, o, Senior Secured Notes, silver by on February 9, 2011 0 Comments

Jaguar Mining (NYSE:JAG) announced they’ve closed on their $99.3 million senior notes offering. The aggregate principal amount was $103.5 million. Included in the issuance was $13.5 million aggregate principal amount of notes following the full exercise of the over-allotment option granted by Jaguar to the original purchasers. The 5.5% senior convertible notes will be due 2016. Net capital raised

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AES Corp Reduces Debt – Analyst Blog

AES Corp. ( AES ) completed the redemption of $400 million of its outstanding Senior Secured Notes. The notes which have a coupon rate of 8.75% were originally due in 2013. The Notes were redeemed at a premium on a pro rata basis at a price equal to 101.46% of the principal amount. The redemption closed on May 17, 2010.  AES has arranged funds for the redemption from the sale of its 15% equity stake to a wholly-owned investment subsidiary of China Investment Corp. November 2009. The transaction closed in March 2010 and China Investment acquired 125.5 million shares of AES common stock for $12.60 each cumulating to $1.6 billion.   AES is highly-leveraged with a high debt-equity ratio of 173.7%, although its long-term debt-to-capitalization is only 63.5% at first quarter-end 2010. The company closed first quarter 2010 with cash and cash equivalents of $3.4 billion from $1.8 billion at fiscal-end 2009.  Arlington, Virginia-based AES is a global power company that owns and operates electric power generation and distribution businesses in 29 countries. The company’s operations are divided into three segments: Regulated Utilities, Contract Generation, and Competitive Supply. The company clocked 2009 revenues of $14 billion and owns and manages $40 billion in total assets.   AES’ businesses are spread across 5 continents in 29 countries, representing a geographically diverse earnings base. Geographic disparity in the target markets of AES has resulted in a portfolio that is well-positioned for capitalizing on regional differences in power prices and weather-driven demand. This insulates the company from specific risks in any single region.  By fuel type, AES’ capacity portfolio is approximately 41% coal, 39% gas, 16% hydro and 4% oil. Revenues are earned equally from generation and distribution, and almost 80% of generation revenues are under long-term contracts.  AES’ focus on long-term supply contracts exposes it to commodity price risk. The company would be unable to pass on any escalation in prices of coal and natural gas to its customers. Profitability at its regulated utilities depends on regular rate relief around the globe from their service countries.  Also the company’s substantial generation capacity under construction in emerging countries may face cost escalation and over-runs. The company is locked into fixed earnings by virtue of its long-term delivery contracts for utility projects and will likely face the impact of cost over-runs.  AES is a non-dividend paying stock in an industry (utilities and energy merchants), which has a high average dividend yield (Zacks industry average is 3.6%). Thus we maintain our Sell recommendation on the Zacks Rank #4 stock.  In the near-term, the dividend-paying Zacks Rank #2 peers who have a Buy recommendation like Black Hills Corp. ( BKH )

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Merge to Offer Senior Notes – Analyst Blog

Merge Healthcare Incorporated ( MRGE ) has decided to offer $200 million of senior secured notes due 2015. The amount raised will be used to fund a portion of the proposed acquisition of AMICAS, Inc. ( AMCS ). Merge is set to acquire AMICAS for $6.05 per share in cash aggregating $248 million. The acquisition is expected to be completed in the second quarter of 2010. Merge took a number of initiatives in the past few months to arrange funding for the AMICAS acquisition. A few days ago, the company raised $41.75 million from fourteen institutional and other accredited investors through a private placement of preferred and common stock with them. Earlier, Merge obtained $200 million of bridge financing from Morgan Stanley ( MS ). The company has also started a cash tender offer for all of the outstanding shares of AMICAS, which will expire at 12:00 midnight, New York City time on Apr 15, 2010, unless extended. The successful acquisition of AMICAS will enable Merge to acquire one of its main competitors and widen its customer base. This will in turn expand the company’s top-line. Merge is a healthcare software and services company focused on integrating radiology workflow to improve productivity, profitability and patient care by fusing business and clinical workflow, and intelligently managing and distributing diagnostic images and information throughout the healthcare enterprise. Merge was paralyzed by several issues in the past like a dwindling cash balance, management turnover, accounting miscues and litigations. The real turnaround started from the second quarter of 2008 when the company received a much-needed cash infusion of $20 million from Merrick RIS, LLC in May 2008. Presently, we

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Alon Krotz Springs announces expiration and results of exchange offer

Filed in Gold Holdings, Senior Secured Notes by on February 12, 2010 0 Comments

Feb 12 – Alon USA Energy Inc: * Alon Krotz Springs announces expiration and results of exchange offer for its 13 1/2 pct senior secured notes due 2014 alon usa energy inc Alon Krotz Springs announces expiration and results of exchange offer

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Libbey Receives Tenders and Consents in Tender Offer and Consent Solicitation for Its Floating Rate Senior Secured Notes Due 2011

Filed in Gold Holdings, Senior Secured Notes by on February 5, 2010 0 Comments

TOLEDO, Ohio, Feb. 5 /PRNewswire-FirstCall/ Libbey Inc. announced today that its wholly-owned subsidiary Libbey Glass Inc. , in connection with its previously announced tender offer and consent solicitation , had received, as of 5:00 p.m. New Yor Libbey Receives Tenders and Consents in Tender Offer and Consent Solicitation for Its Floating Rate Senior Secured Notes Due 2011

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Conexant Completes Debt Redemption – Analyst Blog

Filed in Debt, Gold Investing, Senior Secured Notes by on December 24, 2009 0 Comments

Conexant Systems, Inc . ( CNXT ) recently announced that it has completed the previously announced planned redemption of the remaining $61.4 million of outstanding aggregate principal amount of its floating rate senior secured notes due in November 2010.  The total aggregate redemption amount paid was $62.3 million, including accrued interest. The company funded the redemption with cash on hand.   Earlier, the company retired an aggregate amount of $80 million of its senior secured notes due in November 2010.   Conexant also entered into a new credit facility of $15 million with Silicon Valley Bank through November 30, 2010. The company had earlier raised $21.2 million by offering 8,050,000 shares to the public.   As of October 2, 2009, the company had a total debt of $340.0 million and cash and equivalents of $125.4 million. As a result of this retirement of debt, Conexant will reduce its annual interest burden by more than $5 million.  While Conexant continues to face challenges with eroding sales in WLAN, a flattening ADSL market and declining revenue in its modem business, new management is making drastic changes to overhaul the company’s strategic positioning and return to profitability.   Management undertook significant restructuring activities to transform the business into a smaller but profitable enterprise. In August 2009, the company divested its Broadaband Access Product lines. The company also terminated new investments in wireless networking and divested its Broadband Media Processing business. Management will now target acquisitions to strengthen its product portfolio.  Headquartered in Newport Beach, California, Conexant Systems designs and develops semiconductor solutions that enable consumers to access the digital world. Read the full analyst report on “CNXT” Zacks Investment Research

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Conexant Retires Debt – Analyst Blog

Filed in Debt, Gold Prices, Senior Secured Notes, silver by on December 4, 2009 0 Comments

Conexant Systems, Inc. ( CNXT ) recently announced that it will redeem the remaining $61.4 million of outstanding floating rate senior secured notes due in November 2010 on Dec18, 2009. Earlier, the company retired an aggregate amount of $80 million of its senior secured notes due in November 2010. The notes will be redeemed at a cash redemption price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest to the redemption date. Management plans to use the cash balance on the balance sheet to fund the redemption of debt and strengthen its capital structure. The company had earlier raised $21.2 million by offering 8,050,000 shares to the public. As a result of this retirement of debt, Conexant will reduce its annual interest burden by more than $5 million. As of July 3, 2009, Conexant had a total debt of $422.1 million and cash and equivalents of $123.4 million. While Conexant continues to face challenges with eroding sales in WLAN, a flattening ADSL market and declining revenue in its modem business, new management is making drastic changes to overhaul the company’s strategic positioning and return to profitability. Management undertook significant restructuring activities to transform the business into a smaller but profitable enterprise. In August 2009, the company divested its Broadaband Access Product lines. The company also terminated new investments in wireless networking and divested its Broadband Media Processing business. Management will now target acquisitions to strengthen its product portfolio. Conexant will now apply its capabilities in analog and mixed-signal design and firmware and software development to capitalize on new opportunities in adjacent markets. Last month, the company reported revenues of $56.2 million in the fourth quarter of fiscal 2009, up 10% sequentially but down 31% year over year. Profitability improved due to cost cutting activities undertaken by the management. The company also provided an upbeat outlook for the coming quarter. Revenues are expected to increase 7% sequentially. Headquartered in Newport Beach, California, Conexant Systems designs and develops semiconductor solutions that enable consumers to access the digital world. It operates in an intensely competitive market with many rivals in and outside the United States, including Analog Devices ( ADI ), Broadcom Corp. ( BRCM ) and Texas Instruments ( TXN ). Read the full analyst report on “CNXT” Read the full analyst report on “ADI” Read the full analyst report on “BRCM” Read the full analyst report on “TXN” Zacks Investment Research

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Merge Raising Gross Proceeds – Analyst Blog

Filed in Gold Investing, Gold Prices, Senior Secured Notes by on November 17, 2009 0 Comments

Merge Healthcare Incorporated ( MRGE ) decided to raise up to $27.3 million in gross proceeds, before placement agency fees and other expenses, by offering 9,084,032 shares of the company’s common stock at a purchase price of $3.00 per share. The offer is only for select institutional investors and is expected to close on Nov. 18, 2009. Merge will use the proceeds primarily to prepay in full its senior secured notes held by Merrick RIS, L.L.C. due June 2010. The remaining amount will be used for general corporate purposes like the working capital financing. William Blair & Company, L.L.C. is the lead placement agent for the fund raising offer. Craig-Hallum Capital Group LLC and Robert W. Baird & Co. Incorporated are the co-placement agents for the offering. Merge is a healthcare software and services company focused on integrating radiology workflow to improve productivity, profitability and patient care by fusing business and clinical workflow, and intelligently managing and distributing diagnostic images and information throughout the healthcare enterprise. Merge was paralyzed by several issues in the past like a dwindling cash balance, management turnover, accounting miscues and litigations. The real turnaround started from the second quarter of 2008 when the company received a much needed cash infusion of $20 million from Merrick RIS, LLC in May 2008. Merge Healthcare recently tapped the Chinese healthcare market by forming an alliance with Shanghai Kingstar Winning Co., a leading healthcare IT provider in China. The alliance is likely to widen Merge’s customer base and increase its top line. Congress’ approval of more than $20 billion in spending on health information technology is also likely to benefit the company. However, a majority of the spending in the U.S. will be felt between 2011 and 2015. Merge’s main competitors include AllScripts-Misys Healthcare Solutions ( MDRX ) and Amicas, Inc. ( AMCS ). Read the full analyst report on “MRGE” Read the full

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Headwaters Incorporated Announces Pricing of $328 250 000 of 11% Senior Secured Notes Due 2014

Filed in Private Placement, Senior Secured Notes, Uncategorized by on October 20, 2009 0 Comments

SOUTH JORDAN, Utah—-HEADWATERS INCORPORATED announced today the pricing of its offering of $328,250,000 aggregate principal amount of 11⅜% Senior Secured Notes due 2014 in a private placement exempt from the registration requirements of the Secur …

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