Libbey Glass is calling an aggregate principal amount of USD 45.0 million of its outstanding 6.875% Senior Secured Notes due 2020 for redemption on 7 May 2013.
Libbey Inc. has announced that its wholly owned subsidiary Libbey Glass Inc. is calling for redemption on 7 May 2013, an aggregate principal amount of USD 45.0 million of its outstanding 6.875% Senior Secured Notes due 2020, in accordance with the terms of the indenture governing the Notes dated 15 May 2012. Pursuant to the terms of the Indenture, the redemption price for the Notes will be 103.0% of the principal amount of the redeemed Notes, plus accrued and unpaid interest to, but excluding the Redemption Date. The Notes to be redeemed will be selected in accordance with the applicable procedures of the Depository Trust Company (DTC), the registered holder of the Notes, for partial redemptions. Following completion of the redemption, the aggregate principal amount of the Notes that will remain outstanding will be USD 405.0 million.
A formal notice of redemption has been sent separately to the registered holders of the Notes, in accordance with the terms of the Indenture. The company plans to fund this redemption using cash on its balance sheet and borrowings under its ABL credit agreement.
Stephanie A. Streeter, Libbey’s chief executive officer, said, “We are pleased that, as a result of our outstanding free cash flow generation in the fourth quarter of 2012, we are confirming that we expect to reduce our outstanding senior note debt by USD 45 million. This represents significant progress in our ongoing efforts to reduce our leverage.”