The Sequa corporation (“Sequa” or “the company”) today announced the completion of a full recapitalization that includes the issuance of new loans in the medium or long term. with the first and second right of retention, as well as a new and considerable participation in the capital by the companies associated with the Carlyle Group (“Carlyle”) among other holders. The income generated by both the new medium and long-term loans and the participation in the capital will serve, on the one hand, to repay the medium and long-term loans that Sequa had contracted and, on the other, to obtain capital to serve support for the company’s growth plan.
In addition, Sequa has announced the initiation of a swap offer (the “exchange offer”) of its unsecured priority debt notes that mature in December 2017 (the “promissory notes”) pursuant to which certain holders, including companies associated with Carlyle, exchanged their promissory notes for the recent convertible preference shares for payment in kind. The medium and long-term loans together with the exchange offer and the equity participation will greatly reduce Sequa’s financial leverage and replace its upcoming maturity debt with a new long-term capital structure- personal loans for good and bad credit.
“We are pleased that the refinancing is being successful and that the company has recently received significant investments,” said Tom Mepham, executive director of Sequa. “The combination of these transactions will improve our capital structure, reduce the company’s leverage and improve its future positioning. We wish that the relationship with Carlyle and the rest of the holders of any participation in the capital continues to be as intense in the future in order to work together to raise Sequa to the next level of growth. “
After this transaction, Carlyle holds the majority of Sequa’s voting securities.
Adam Palmer, managing director of Carlyle and international head of government services, defense, and aerospace, said: “The success of this recapitalization is a crucial step in ensuring Sequa’s long-term success.” Tom Mepham and his team achieved an impressive improvement in Sequa’s operations and performance last year, we are convinced that the company has a promising future and we look forward to continuing to support Sequa in the coming years. “
About the Sequa Corporation, The Sequa Corporation is an industrial company
that operates, through its Chromalloy and Precoat Metals business units, in areas as diverse as aerospace and the energy and metal coating industries. Chromalloy offers the airline industry a wide range of replacement services and is one of the most important independent suppliers in the field of advanced repair of jet engines. Chromalloy works around the world 24 hours a day to provide airlines with the fastest and most reliable spare parts for crucial parts of the engine, such as turbine fins.
This type of repairs increases the life of the parts and reduces the maintenance costs of the airlines. Chromalloy also operates in the sector of industrial and marine gas turbines as well as in the military field. Precoat Metals, the largest independent company dedicated to the installation of metal pre-coating in North America, offers reliable and fast services of superior quality to a wide range of industrial customers. It is a leader in the application of decorative coatings and protectors of steel continuous coils in both commercial and residential construction projects. In addition, Precoat is the provider of an increasingly broad list of end users in the industry.
About the Carlyle Group, The Carlyle Group is a global and alternative asset manager that as of December 31, 2016, managed more than 158 billion dollars of assets in 281 investment vehicles. Carlyle’s objective is to invest with expertise and generate value on behalf of its investors, many of the public pensions. Carlyle’s investments address four segments -participation in the private and corporate capital, real assets, global market strategies and investment solutions- in Africa, Asia, Australia, Europe, the Middle East, North America and South America.
Carlyle has extensive experience in industries such as aerospace
, defense and other government services, retail consumption, energy, financial services, healthcare, industry, real estate, technology and business services, telecommunications and media, and transportation. The Carlyle group has more than 1,600 employees and 35 locations on six continents.