Georgia Gulf Corporation (NYSE:GGC) today announced the pricing of its
previously announced offering of $500 million aggregate principal amount
of senior secured notes due 2017 (the “Notes”). The Notes will have an
interest rate of 9.0% per annum and are being issued at a price of
99.346% of their face value. The closing of the offering of the Notes is
expected to occur on December 22, 2009 and is conditioned upon the
Company concurrently entering into a new senior secured asset-based
revolving credit facility, as well as other customary conditions.
The Company intends to use the net proceeds from the offering of Notes
and borrowings under that new credit facility (i) to repay its existing
senior secured credit facilities, (ii) to repay its existing accounts
receivable securitization and (iii) to pay certain related transaction
costs and expenses.
The Notes and the related guarantees have not been, and will not be,
registered under the Securities Act of 1933 or the securities laws of
any other place and may not be offered or sold in the United States
absent registration or an applicable exemption therefrom. The Notes are
being offered and sold only to qualified institutional buyers under
Rule 144A and to persons outside the United States under Regulation S.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the Notes, nor shall there be any offer,
solicitation or sale of any Notes in any jurisdiction in which such
offer, solicitation or sale would be unlawful. This notice is being
issued pursuant to and in accordance with rule 135(c) under the
Securities Act.
Forward-looking Statement Safe Harbor
This press release contains “forward-looking statements” subject to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on management’s
current assumptions regarding business conditions, and actual results
may be materially different. Risks and uncertainties inherent in these
assumptions include, but are not limited to, future global economic
conditions, economic conditions in the industries into which our
products are sold, uncertainties regarding asset sales, synergies,
potential sale-leaseback arrangements, operating efficiencies and
competitive conditions, industry production capacity, raw materials and
energy costs, uncertainties relating to Royal Group’s business, our
ability to consummate the transactions described herein and liabilities
and other factors discussed in the Securities and Exchange Commission
filings of Georgia Gulf Corporation, including our annual report on Form
10-K for the year ended December 31, 2008 and our quarterly report on
Form 10-Q for the quarter ended September 30, 2009.
Georgia Gulf Corporation
Martin Jarosick, 770-395-4524
Investor
Relations